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Levels to watch: FTSE 100, DAX and Dow

Recent downside for indices appears to be slowing, with European markets starting to show signs of a resurgence.

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 consolidates within triangle formation

The FTSE 100 is trading within a symmetrical triangle formation, coming off the back of Monday’s pullback.

With the price having just recently hit the upper threshold of this pattern, there is a good chance we will see short-term downside. However, for the breakout, watch for an hourly close above 7254, or below 7205 for a signal of where we go next.

DAX downturn hits trendline support

The DAX has been regaining ground following a move into trendline support.

There is a strong chance we could see a more protracted move higher should we see a break through the near-term 12,504 resistance. Alternatively, we would need a break below 12,332 to bring a good chance of further downside.

Dow downside brings index into key support

The Dow Jones is trading lower in a much more consistent manner, with short-term intraday lower highs and lower lows in play off the back of a bearish rising wedge breakdown. This is bringing us into the 24,805 support level, which represents the first major swing low out of that wedge.

A break below that 24,805 level would provide a signal that we are set for further weakness going forward. Until then, watch for a potential rally up through recent intraday swing highs, such as 24,985 and 25,025, to provide a bullish outlook.  

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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.