Levels to watch: FTSE, DAX and Dow

European markets lead the way, with the Dow Jones failing to follow their lead.

Source: Bloomberg

FTSE breaks through triangle resistance

The FTSE 100 managed to finally break through 7033 resistance yesterday, with price subsequently pulling back to trendline support. The index seems to be moving in a relatively orderly fashion now and it makes sense to buy the dips as long as we continue to create higher lows and higher highs.

As such, a move onwards towards 7055 seems likely, with a bullish view in place as long as we do not break back below 7000.

DAX breaks higher once more

The DAX has managed to negate the warning sign created when price fell back to the 10,588 mark off the back of a reversal from the key 10,694 level. We have since seen price break through this notable resistance level and is pushing on towards the important 10,780 level.

A bullish view is in play, with notable support at 10,694 and 10,588.

Dow selling off from wedge pattern

The Dow is finding it difficult to keep up with the Europeans, with price breaking below trendline support and pointing towards potential further losses.

The key level to break is 18,111, where an hourly close below that level would point towards a move back down to 17,956. We would need to rally back above 18,267 to create a less bearish outlook.

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