Levels to watch: FTSE, DAX and Dow

Markets are looking a little shaky as the weekend nears, but overall it looks like the bulls are back in charge.

Data board
Source: Bloomberg

FTSE 100 rallies off 7130 floor

It looks like the index has found a floor at 7130, against which it has begun to rally. Bulls will be looking for a move above 7202 and 7223 intraday, while on the daily chart 7243 (the weekly pivot) and then 7309 are initial objectives.

A break above 7359 would put the index back in all-time high territory. Bears will need to post a daily close below 7130 to suggest a new move lower is at hand.

DAX rally likely to be fuelled by euro weakness

Although the index failed to hold on to most of its gains yesterday, a weakening euro may well provide fresh fuel for the rally. The first target is 11,920, followed by 12,081 and then 12,405. Immediate support is possible around 11,820, and then down to 11,760 and 11,715.

No sign of a halt to Dow rally

The rally here has been relentless over the past four sessions, with so far little sign of a halt. We have yet to see any real dip, but a pullback towards 20,000 could provide this, or even a drop as far as 19,900 may also give another opportunity to join the rally. It will need a firm drop through 19,700 to invalidate the current bullish outlook.

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