Levels to watch: FTSE, DAX and Dow

European markets appear to be on the rise as they attempt to regain ground from their US counterparts. Meanwhile, the Dow continues its somewhat uninspiring run of form.

Source: Bloomberg

The FTSE 100 is trading within an ascending triangle formation, which points towards a likely break higher in the near future. We have a clear uptrend in play, with the creation of higher lows alongside flat lining tops.

As such, an hourly close above 6744 would point to another leg higher for the index, where 6808 and 6875 represent the next key resistance levels.

Alternately, an hourly close below 6606 would point towards a more bearish outlook, with 6500 the next key support level.

The DAX has managed to break briefly through Monday’s high of 10,170, with price subsequently moving lower. The key level to watch today is 10,121, which has been providing support overnight.

This level has been a reliable form of support and resistance throughout 2016. As such, the ability to maintain price above 10,121 will be crucial to the fortunes of the DAX today.

While the Dow has been grabbing the headlines after continued gains, those gains have been uninspiring in size, with the index largely eking out gains rather than moving in a convincing manner.

Nevertheless, the move lower we are currently seeing is likely to resolve in another move higher to conform to the recent trend. That is unless we see an hourly close below 18,554 support, which was established yesterday.

Given the fact that we are reaching all-time highs, resistance levels are hard to come by beyond yesterday’s high of 18,637.

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