Levels to watch: FTSE, DAX and Dow

Despite the political turmoil, the stock markets are pushing higher once more. 

German Stock Exchange trader
Source: Bloomberg

FTSE rallying towards key resistance level

The FTSE is pushing higher this morning, as a sharp deterioration in the pound provides a boost for internationally based stocks. Crucially, we are seeing the price move closer to the key 7555 resistance level, which, if broken, would point towards a continuation of this resurgence. The long upper shadow on the current candle could provide a warning sign that this ascent could falter.

Until we see the 7555 level broken, there is a risk that we will see this market turn lower in line with the recent trend.

FTSE chart

DAX heading towards month highs

The DAX is punching higher following from a base formed throughout the week. This points towards a continuation of the recent uptrend, with a break through 12,881 resistance.

A break back below 12,638 would negate this bullish view.

DAX chart

Dow begins to move higher

The Dow Jones is gradually moving higher following the recent retracement into the 50-day simple moving average (SMA). Near term resistance of 21,230 and 21,269 provides us with an area of resistance which I broken would signal a continuation of the recent uptrend.

Watch out for a break below 20,936 to signal a reversal of this, with a bullish outlook in play until that happens. 

Dow Jones chart

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