Levels to watch: FTSE, DAX and Dow

European markets show signs of potential impending losses, while US losses provide mixed messages for the resilient Dow.

Data screens reflected in a trader's glasses
Source: Bloomberg

FTSE looks bearish following breakdown

The FTSE 100 sold-off sharply at the open this morning, following on from a triangle formation over the past 24 hours. The break through trendline support alongside the 6778 swing low was a bearish signal that could spell trouble for the index.

This week’s OPEC meeting will likely provide the key catalyst for whether these losses remain, yet from a technical perspective, things look primed for further losses. Price is regaining ground following initial weakness, yet we are likely to see the index move lower before long, with an hourly close below yesterday’s low of 6768 key to further downside.

FTSE 100 price chart

DAX tumbles below key support level

The DAX has dropped below the key 10,588 level, following on from a period of consolidation below the crucial 10,807 resistance level.

Should we see price maintain below the 10,588 level, then this could be a good area for the sellers to come in again.

As such, a bearish outlook is in play, with the 10,588 level crucial to the day’s fortunes. 

DAX price chart

Dow weakens amid wider bull market

The Dow Jones has weakened somewhat over the past 24 hours, with price tumbling below the 19,120 mark yesterday. This could spell the beginning of a period of weakness, yet a break back above 19,141 would largely put that idea to bed.

As such, there is the potential for further weakness, yet given the resilience of the US markets, the chance of further downside is lessened. 

Dow Jones price chart

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