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Levels to watch: FTSE 100, DAX and Dow

Consolidation is the name of the game today, with the FTSE 100, DAX and Dow all awaiting a breakout.

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.

FTSE 100 consolidating within triangle formation

The FTSE 100 is trading within a symmetrical triangle formation this morning, as the index consolidates off the back of last week’s sell-off.

A break above 7198 would complete a double bottom and point towards further upside. However, until that happens, there is still a chance we could simply turn lower once more. As such, it makes sense to watch out for the breakout to guide us from here, with an hourly close above 7198 pointing towards further near-term gains, while a break below 7117 would point towards a more bearish scenario.

DAX hits major resistance level

The DAX has been consolidating following the rally into 12,274 resistance yesterday.

This level is going to dictate the state of play going forward, with a good chance of a short-term move lower towards trendline support. Ultimately, we are looking for a break below 11,967 or above 12,274 to guide us from here. Watch for an hourly close for confirmation of that breakout.

Awaiting the Dow breakout

The Dow Jones is also in consolidation mode, with the price rising from a long-term trendline yesterday.

With lower highs and higher lows in play, we are awaiting a breakout, with a bullish view in play above 25,056, and a bearish view below 24,413. Once more, look out for closed candles to solidify such breakout signals.

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CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.