Levels to watch: FTSE 100, FTSE 250 and DAX

Markets are relatively quiet so far this morning, and with the US out of the picture today Europe may struggle to make further gains.

US trader
Source: Bloomberg

FTSE 100

After the breakout to new highs for the year, the question is what comes next. The next targets to watch on the upside become 6750 and then 6825, the highs from early August 2015 and then mid-July 2015 respectively.

Having seen such a relentless push higher, some weakness today would not be surprising, but so long as the price holds above 6440 then we can continue to expect gains. A close below 6440 raises the prospect of a bigger move lower, perhaps down towards 6320 and then 6200.

FTSE 100 daily chart

FTSE 250

Having pushed back above the mid-June (pre-Brexit) lows, the index looks in fine form. Some skittishness is possible around 16,500, which was key support in early May and also proved significant back in February and March. A close above 16,500 would open the way longer-term to 17,000 and then the pre-Brexit peak around 17,400. 

FTSE 250 daily chart


​The index remains trapped below the 9800 area that marked vital support back in March and then in May as well. Any turn lower would first head towards support at 9440, and then below this we look to 9260 and then 9100.

The absence of US markets today may mean we see little upside progress, but a break above 9800 suggests a move to 10,000 and then 10,300.

DAX daily chart

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