Levels to watch: FTSE, DAX and Dow

OPEC-fueled gains calm down somewhat for indices. However, are we going to see a pullback, or is this rally set to continue?

US traders
Source: Bloomberg

FTSE 100 rallies after OPEC deal

Yesterday's deal to cut production among OPEC members provided the FTSE with a boost, bringing price back into a major resistance zone. This zone, consisting of the three market tops over the past two months, spans from 6932 to 6955.

Given the previous reversals at this region, the reaction from here will be key. As such, a break and hourly close above 6955 would provide us with a bullish continuation signal. An alternation — watch out on the intraday charts for a potential reversal lower.

DAX rallies into wedge apex

The DAX has seen significant upside overnight, yet with price tightening there is a clear rising wedge pattern in play. This wedge points towards a potential break lower, if only for a short-term retracement of the recent gains.

Nevertheless, we are clearly trending higher on an intraday basis and thus we would need to see an hourly close below 10,499 to point towards the possibility of a deeper move lower.

Until that happens, the uptrend remains intact and further gains are certainly a possibility.

Dow seeks further gains

The Dow Jones is breaking higher following a retracement this morning. Price action has clearly slowed since the sharp appreciation yesterday, however as long as we continue to see higher highs and higher lows, a bullish outlook remains in play.

For now, as long as price remains above 18,319, further gains look likely.

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