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Levels to watch: FTSE, DAX and Dow

DAX leads markets higher, while FTSE lags behind as indices hope to continue the recent bullish trend.

A man standing by a DAX sign
Source: Bloomberg

FTSE continues the charge higher

The FTSE 100 seems to have found strong resistance at the 6429 region. This is the early July support level, and thus I would expect some sort of response. For the time being this looks a lot like the previous short-term periods of consolidation, given that we are not necessarily seeing any sharp move lower. However, in 6384 we have a decent support level to watch out for, where a break below could lead to another short-term selloff for the day.

For now, I expect the price to remain bullish, with 6384 holding up. A move back to 6450 seems likely. However, should the price move back below 6384, then I would look for a deeper retracement to 6344 and even 6310.

FTSE 100 chart

DAX punches to new multi-week high

The bullish momentum of the DAX this morning could be a pointer to further upside for the FTSE. However, for now it is clear that this chart remains in a bullish phase. As we are breaking above the 10,152 resistance level, I expect it to form new support for the day’s trading. I am bullish and expect any retracement to use previous notable resistance levels as a new base to move higher from.

DAX chart

Dow testing resistance with a breakout likely

The Dow Jones is looking a lot like the DAX prior to the break higher and, for this reason, it seems likely that we will see something similar from the US index. The 17,122 mark is the key resistance level to watch for now, where a break above it should bring another decent move higher. A failure to close above this level would point towards 17,037 which is the support level of recent consolidation. A break higher would look towards 17,200 as the next short-term resistance point. 

Dow Jones chart

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