Levels to watch: FTSE, DAX and Dow

Today looks like it could be a positive day for indices, with a strong open leading to a slight pullback. Will that pullback extend or will the indices push higher once more?

Source: Bloomberg

FTSE breaks to new highs

The FTSE 100 has charged higher this morning, breaking through the key 7244 resistance level. We are seeing the index pull back now, yet this simply gives us another bite at the cherry for longs.

Of particular interest is the 7244 level, which represents not only the 50% retracement, but also the previous highs. As such, a bullish outlook remains in play, with a break below 7223 required to negate this view.

DAX continues to respect range

The DAX is rallying sharply this morning, following a fall into the 11,530 support zone. The index has broken through the double-bottom neckline of 11,569 this morning, with the current candle clearly coming back to that level as new support.

Should that hold, we are looking for another bounce higher for the index. Even if we manage to break and hold below that level, it would simply point towards a retracement of the rally from 11,525, where 11,550 becomes interesting for longs.

Dow rallying from 76.4% retracement

The Dow Jones is moving higher once more this morning, following on from a retracement into the 76.4% level (19,871) and trendline support. Given the continued creation of higher highs and higher lows, we would need to see a break back below 19,832 to negate the bullish view.

Until then, further gains seem likely, with the 20,000 mark becoming increasingly likely to be overcome.

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