Levels to watch: FTSE, DAX and Dow

With the FTSE breaking lower, will the DAX and DJIA follow suit with both at crucial support levels?

Data chart
Source: Bloomberg

FTSE showing signs of weakness
The index has provided us with a relatively range-bound March so far, with price generally selling off between 6200 and 6220, only to bounce once more at 6100. This morning we are seeing the index break through 6140 and 6128.

It seems likely we will see a return to 6100 should this overnight trend persist. Given the sharp break below 6100 on Thursday (due to ECB), this 6100 support level could be weakened, giving way to a possible break lower should we sell-off further.

With that in mind, I am more inclined to believe we would see a break below 6100 than above 6220. Key support levels are 6100, 6065, 6032 and 6006. Notable support levels to watch are 6200 and 6220.

DAX rally comes into question
The index finally took a break from the insatiable rally which dominated trading since the post-ECB sell-off. Crucially, this pullback has moved back to the 9928 support level, which is needed to hold to maintain the continued establishments of higher lows. A closed hourly candle below 9928 could instigate a more bearish shift for the index.

Conversely, the ability to hold on to prices above 9928 could spark yet another rally to continue the recent uptrend. Support levels of note are 9928, 9900, 9852 and 9695. Resistance levels to watch are 10,019, 10,042 and 10,120.

Dow at key support level
It's a similar story for the Dow, which has pulled back to the 17145 support level (yesterday’s low) overnight. There is a clearly defined uptrend in play here and thus any break lower would signal a possible bearish shift in mentality.

Until we do see an hourly close below 17140, the bullish outlook remains, with resistance at yesterday’s high of 17274. Above that, a descending trendline resistance is worth noting as a possible precursor to a bearish reversal. Should we see a bearish hourly close below 17140, support levels to watch would be 17097, 16918 and 16818.

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