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Levels to watch: FTSE, DAX and Dow

Indices held up well on Friday, and are looking to add to gains as the week goes on.

Data
Source: Bloomberg

FTSE 100 could see resistance at 6430

Friday saw the index stabilise, moving back into the 6100-6200 range that has prevailed for the month of March. Continued gains will push the index back towards the top end of the range, around the 6200-6220 area, where some resistance may be found.

However, moves on from here are likely to encounter resistance around 6320, the high from the end of December, and then to 6430, which was the area where gains faltered from October until early December.

Dips towards 6000 may still be bought, but only sustained price action below this level would cancel out the optimistic scenario.

DAX could see 100-day SMA

The index is already pushing up to 9900, which was the previous high in March (excluding the European Central Bank-day spike to 10,000). If this is broken then the 10,000 level becomes the next area to watch.

Beyond this the old downtrend line from last year comes into view around 10,200, also close to the current 100-day simple moving average (10,199).

Beyond this the 10,524 area, the September high, is the next level to watch.

Dow could see further upside

Evidently dips continue to be bought here, so with the 200-day SMA breached we now look towards 17,554. With the key 17,100 area breached, we should expect further upside, potentially as far as 18,000 for the index.

Sustained price action below 17,000 would be needed to invalidate the bullish outlook.

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