Levels to watch: FTSE 100 and Dow

The FTSE 100 looks set for new record highs, while the Dow rebounds from a recent descending triangle formation.   

US stocks  figure

FTSE 100 heads to new highs

The FTSE 100 is heading into new territory as we see off 2017, with the push through 7600 on the 21st leading to a period of consolidation. The breakout from this consolidation is likely to be a bullish one, with an hourly close above 7616 providing a bullish breakout signal.

Alternately, a fall back below 7510 would negate that bullish outlook. 

 Dow bouncing from triangle support once more

The Dow Jones  is moving higher from the 24,693 support level this morning, with the index trading within a descending triangle formation. A break above 24,850 would point towards a bullish breakout from this formation.

However, until then there is a chance that short-term upside could simply bring us back into trendline resistance around 24,820. Watch out for a break below 24,693 or above 24,850 to dictate near-term price action.

 

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