Levels to watch: FTSE, DAX and Dow

Despite the Doha duster, we are seeing indices rally heavily, with both the DAX and Dow Jones breaking to new multi-month highs.

Source: Bloomberg

FTSE rallies up to key resistance

The FTSE has been on an incredible recovery rally, retaking all the initial weekend losses and subsequently breaking up to create a new four-month high this morning.

The 6376 level will be crucial today, as a closed hourly candle above this would likely spark another strong move higher for the index. Otherwise, the inability to break through this level with conviction could see it mark the top for the day.

To the downside, a closed hourly candle below 6337 would provide a more bearish view. 

DAX turns higher once more after pullback

Yesterday also saw the DAX massively outperform initial expectations, rallying through the 10,100-10,121 resistance zone. This morning’s gains seemed to be weakening with a doji and subsequent retracement. However, we are now seeing the index turn higher once more.

Given the break through the 10,100-10,121 resistance zone yesterday, a bullish view is now back in play and we would need to see a move back below 9905 for this to be negated. We are now in a clear region without a notable near-term resistance level to watch out for until 10,862.

Dow rallying to nine-month high

The Dow has also seen an incredible rally since the Doha drop at yesterday’s open. The break through 17,978 was particularly important and has provided new support for this morning’s move higher.

There are few major resistance levels to the upside and thus it is all about riding the wave higher. A bullish view is now in play, unless we see an hourly close below 17,961. 

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