Levels to watch: FTSE 100, DAX and Dow

Bearish questions arising after period of upside for European and US stock markets.

FTSE 100 rallying through trendline resistance

The FTSE 100 has been regaining ground overnight, with the index hoping to overcome yesterday’s peak of 7167. Given the fall below 7116, there is a risk that we could see this rally fall short.

With the price rallying through trendline resistance, we are passing through the first hurdle before overcoming that 7167 level. The other is the 76.4% retracement, which is currently being challenged. Watch out for whether the index can push through this resistance zone, with a subsequent move above 7167 required to provide greater confidence of a bullish continuation.

FTSE 100 chart

FTSE 100 chart

DAX turning higher after brief pullback

The DAX has been falling back overnight, with the index having rallied into the notable 11,691 resistance level.

Despite rising within a bearish wedge formation, it looks likely that we are looking at the start of another leg higher. A rise through the 11,682 peak seems likely, with such move maintaining the recent uptrend. A bullish outlook remains unless we see a break below 11,401.

DAX chart

DAX chart

Dow raises questions at key resistance level

The Dow Jones has started to show tentative signs of weakness from a crucial area of resistance, with the fall below 25,763 raising questions given the move into the 26,277 peak from November 2018.

This could be the beginning of a bearish period, with a break through 26,277 required to maintain the bullish trend.

Dow Jones chart

Dow Jones chart


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