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FTSE 100, DAX 40 and S&P 500 Gingerly Regain Lost Ground on Middle East De-escalation Hopes

FTSE 100, DAX 40 and S&P 500 Gingerly Regain Lost Ground on Middle East De-escalation Hopes

FTSE100, DAX 40, S&P 500 Analysis and Charts​​​FTSE 100 gaps higher on Middle East de-escalation​On Friday the FTSE 100 dropped sharply, to its late February high at 7,751 as Israel fired missiles at Iran in a retaliatory attack in out-of-hours trading. The index then regained all of its losses and ended the day in slightly positive territory as Iran made it clear that it wasn’t interested in retaliation.​On Monday morning the FTSE 100 gapped higher and is fast approaching the psychological 8,000 mark which may offer short-term resistance with the 8,017 early April high. A weaker Pound Sterling is also aiding the recovery.​For the gap to be filled a fall through Monday’s intraday low at 7,944 to Friday’s high at 7,935 must occur.FTSE 100 Daily Chart

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​DAX 40 recovery is underway​The DAX 40 fell to levels last traded in late February when it hit the 17,400 mark as Israel launched missiles at Iran late last week.​Friday’s Hammer formation on the daily candlestick chart has been followed by a rise above Friday’s candlestick daily high at 17,773 on Monday morningwith the April downtrend line at 17,976 being in focus, together with the minor psychological 18,000 mark. Were a daily chart close above Friday’s high to be made on Monday, at least a short-term bullish reversal pattern would be triggered.​Slips may find support along the 55-day simple moving average (SMA) at 17,733.Below it sit the 7 March 17,619 low and the 50% retracement of the mid-January to April advance at 17,490.DAX 40 Daily Chart

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​S&P 500 recovers from its two-month low towards the 5,000 mark​The S&P 500 saw three consecutive weeks of losses take it to a two-month low at 4,927 on escalating tensions in the Middle East and amid hawkish Fed speak as it hit levels last traded in mid-February.​The index is trying to regain some of its recently lost ground as the situation in the Middle East points towards de-escalation with the psychological 5,000 mark being back in focus. It may act as resistance, though. Further up sits the mid-February high at 5,049 which should also act as resistance.​Minor support below Friday’s Harami candlestick pattern low at 4,954 sits between Friday’s 4,927 low and the 4,920 mid-February trough.S&P 500 Daily Chart element inside the element. This is probably not what you meant to do!
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