Levels to watch: FTSE 100, DAX and Dow

The FTSE 100 and Dow are showing signs of strength amid recent recovery signals. However, with the DAX reaching Fibonacci resistance, we could see that index diverge with a move lower.

FTSE 100 heading back towards key resistance

The FTSE 100 is heading higher once again this morning, with the continued creation of higher lows and flatlining tops putting further emphasis on the importance of the 7370 mark.

An hourly close above there would point towards further near-term upside. Alternately, a break back below 7334 would point towards a potential fall back, towards the 7280 mark. 

FTSE 100 chart

DAX rallies into Fibonacci resistance

The DAX has rallied into the 76.4% retracement level at 13,058, with the index starting to weaken from that point. The creation of lower highs points towards a possible move lower from here.

However, it is worth noting that such downside has repeatedly failed to break lower from the 12,850-12,900 region. For now, unless we break above 13,118, a bearish shift looks likely from here. 

DAX chart

Dow starts to turn higher

The Dow Jones is moving into a more bullish phase, following a near 76.4% retracement. We are seeing that Fibonacci retracement come into play once again this morning.

A short-term pullback into 24,153 will provide a potential temporary buying opportunity, but a break below 24,134 would throw this bullish short-term view into doubt. However, for now, there is a good chance we will move higher from here.  

Dow Jones chart

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