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Levels to watch: FTSE 100, DAX and Dow

Further gains look likely for consistent DAX and Dow markets, with the FTSE 100 attempting to claw back lost ground.

Stock exchange
Source: Bloomberg

FTSE 100 rallies into key resistance

The FTSE 100 has continued to move higher following a 76.4% retracement over recent weeks. The push higher from the Fibonacci level has taken us back to the scene of last week’s big breakdown. That support level of 7294 now forms resistance, with the price action dictated by how this index responds to that level.

An hourly close above 7294 would point towards a potential move into 7320 or 7350. Conversely, an hourly close below 7262 could point towards a weaker trend coming back into play. 

FTSE100 chart

DAX turning higher following 76.4% retracement

The DAX is working out very well, with a 76.4% retracement earlier in the week giving way to subsequent gains. With the price pushing through 12,566 resistance, the next hurdle comes at 12,576.

Ultimately, it looks likely that we will see a strong move higher from here, with a bullish outlook remaining in place unless we see a move back below 12,506.

Germany30 chart

Dow grinding higher with minimal pullbacks

The Dow Jones is moving higher this week, with the price trading within a rising wedge. The pair has previously given us few decent pullbacks to buy into, and given the current bearish wedge pattern there is a potential for a move lower.

For a bearish short-term picture to come to fruition, watch out for an hourly close below 22,365, and 22,340. However, until then further upside is the preferred outcome. 

DowJones chart

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