CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved.

Levels to watch: FTSE 100, DAX and Dow

US markets continue to outperform, while the FTSE 100 and DAX trade around crucial resistance zones.

German stock exchange
Source: Bloomberg

FTSE 100 turning lower from resistance zone

The FTSE 100 has been seeing some weakness come into play this morning, following a rally into the crucial 7436-7461 resistance zone. This area of resistance encompasses a host of tops seen back in August and September. With that in mind, there is a good chance we could see a pullback from here, with the ability to break through 7461 providing key clues as to where this index is set to move next.

As such, today’s price action will be very telling, with the potential of pullback from here. Alternately, a break through 7461 would indicate a continuation of the recent uptrend.

DAX trading near crucial resistance level

With Germany enjoying a national holiday, the DAX market is not open. However, we allow you to still trade the DAX and given its popularity, it makes sense to look at where things could go from here. The price has rallied towards the crucial 12,954 all-time high, which, if broken, would have significant bullish long-term implications. This is clearly the kind of area where we are either going to break out or see some form of pullback.

With that in mind, it makes sense to look out for either of those possible eventualities. An hourly close above 12,954 would signal a bullish breakout signal. Meanwhile, a move back below the 12,899 level would signal an initial bearish short-term signal for the index. 

Dow continues to create new highs

The Dow Jones continues to form new all-time highs, with yesterday seeing an incredible rally for the index.

The intraday charts will be key here, with a bullish outlook remaining in play unless we see a move back below the 22,556 swing low.

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