Levels to watch: FTSE, DAX and Dow

Volatility brings choppy markets, yet the creation of higher lows, accompanied by double-bottom targets means the picture is bullish going into a crucial day of trading. 

A man looking at charts
Source: Bloomberg

FTSE at resistance zone points to possible move lower

FTSE is currently holding around a key resistance zone, between the descending trendline and 18 June low. So far, the price has held below this zone and I believe this will be crucial for the direction of the index ahead of the US jobs report later today. I will be watching for intraday candlestick patterns to signal that the price is going to reverse lower from this zone, at which point I would be looking at 6569 and 6500. However, should the price move above 6623 it would point towards the resistance levels of 6640 and 6672.

FTSE chart

DAX choppiness points to difficult market despite gains

There has been bullish price action in the DAX following the break higher from our support triangle. However, the nature of the headlines out of Greece have meant that the bullish momentum since has been very choppy. This morning’s price action has looked like a potential break higher, yet this has failed to materialise. However, with the double-bottom pointing towards a move to 11,378 and the price having held up above the 11,166, I am bullish. First resistance to watch out for is at yesterday’s high of 11,290, followed by 11,350 and 11,378. A move below 11,120 would bring a more bearish view to proceedings. As ever, make sure to watch out for Greek developments as this is hugely important to price action right now.

DAX chart

Dow moving higher as higher lows point to further gains

The Dow Jones is moving higher on a day where volatility is near enough a certainty given the release of the US jobs report. The index bottomed out in late June and the creation of a double-bottom formation which points towards a move back to 17,914. With the price currently at the key 17,802 resistance level, I will await an hourly close above this level to signal another move higher. I do believe this is likely to happen yet with two failed attempts so far, I am aware we could see another move lower in the near term. A break above 17,802 would point towards resistance levels at 17,848 and the double-bottom projection of 17,914. Meanwhile, a move below 17,676 would bring a more bearish outlook. 

Dow Jones chart

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