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

European consolidation continues apace, with US markets outperforming yet again.

Wall Street
Source: Bloomberg

FTSE 100 rallying back into trendline resistance

The FTSE 100 is moving higher once again with the price briefly falling below the 7505 support level. The index has been pulling back since the turn of the week, following a move into the range top around 7558. There is a good chance that the range will continue with the price moving back into the 7558 level.

For confirmation, look for a break through trendline and horizontal (7543) resistance. To the downside, we need to see the price fall below 7484 to point towards a wider sell-off for this market. 

DAX moving higher within triangle formation

The DAX has been consolidating within a symmetrical triangle formation over recent trading days, with the price currently around halfway into that pattern. We need to see a move below 12,954 or above 13,073 to provide a breakout signal.

However, with a clear uptrend in play for this market, it makes sense to look for bullish positions within the lower end of the pattern if hoping to trade this market prior to the breakout.

Dow moving higher from Fib support

The Dow Jones has been moving higher from a 61.8% retracement, with the market pulling back yet again set within a very clear-cut uptrend. With that in mind, it is likely we will see another record high before long.

Essentially, as long as the price doesn’t fall below 23,200, then further gains seem likely. That being said, there is always a chance of a deeper retracement into the 76.4% level (23,240), which would simply be viewed as a new buying opportunity. 

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