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Levels to watch: FTSE, DAX and Dow

Mixed signals for indices points towards a period of indecision, with the FTSE 100 starting to strengthen, the DAX showing signs of weakness and the Dow Jones recovering from yesterday’s weakness. 

Data
Source: Bloomberg

FTSE rallying into key resistance

The FTSE managed to hold up above the 6707 low yesterday, instead creating a new higher low. With that in mind, a break above 6814 would provide the basis for a potential rally for the index.

That being said, this recent price action could still be perceived as a retracement of Friday's sell-off, thus necessitating a break above 6856 to truly provide a bullish view. 

FTSE

DAX showing initial signs of weakness

The DAX has once again failed to break through the all-important 10,807 resistance level yesterday. That represents the second failure at that level in three days.

A break through this resistance level would provide a strong bullish breakout signal. However, until that happens we have the potential for a pullback.

An hourly close below 10,669 would provide a clue that we could be due a pullback, with the 10,600 and 10,574 region offering the next important support level.  

DAX

Dow uptrend continues despite retracement

The Dow is gradually gaining ground this morning, following on from a pullback yesterday. Crucially we didn’t see price move back below 18,741, thus retaining the bullish view.

With that in mind, a push through 18,972 would provide a warning sign that we could start to turn lower. However, a break below 18,741 would be the more significant bearish short-term sign. Until then, the bullish outlook remains. 

Dow Jones

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