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Levels to watch: FTSE 100, DAX and Dow

Weakness in early trade could bring question marks regarding the uptrends in the FTSE 100, DAX and Dow. However, with the uptrends still intact, we could push higher from here.

Wall Street
Source: Bloomberg

FTSE 100 beginning to roll over from resistance

The FTSE 100 managed to rally into the notable 7553 resistance level this week, with a fleeting move into a four-month high seen yesterday. However, we have since seen the index show signs of weakness, with the price moving lower this morning. With that in mind, there is a chance we could see a pullback at the end of the week, with the 7519 and 7488 levels key to such a move.

Ultimately, we would need to see a break through yesterday’s high of 7566 to continue this recent uptrend. Until then, watch out for the potential breakdown through support as a sign of an impending wider retracement.

DAX pulling back after fresh highs

The DAX managed to break through the 13,000 mark yesterday, posting a new all-time high in the process. However, we are seeing the index fail to build on that move this morning, with a pullback towards a cluster of moving averages. The key near-term support level comes at 12,970, which needs to hold to point towards further gains today.

Otherwise, a break below that level could bring us back into the consolidation mode seen last week. So far we have seen the 76.4% retracement respected perfectly, and thus keep an eye out for the 12,979 level as potential further support.

Dow consolidating after yesterday’s highs

The Dow Jones has been slowly gaining ground of late, and with the weakness we are seeing this morning, it looks like we are in another consolidation phase before we move higher once more.

Despite the slow nature of the recent price action, the continued creation of higher lows means that any longs can shift the stops along the way. As such, further upside seems likely, unless we see a break and hourly close below 22,822.

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