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Levels to watch: FTSE, DAX and Dow

Questions are being asked in Europe after the FTSE and DAX weakened in early trading. However, with the Dow approaching a triangle apex, will we see the US lead the way once more?

IG Analyst

Publication date : 2017-02-28T09:16:20+0000

Wall Street

Source: Bloomberg

FTSE turning lower again

The FTSE has followed up a higher low with a lower high, thus providing a somewhat mixed picture for where to go next.

With this in mind, it makes sense to wait for an hourly close above 7260 (bullish) or below 7238 (bearish) for our next signal.

FTSE chart

FTSE chart

FTSE chart

DAX weakening from key resistance cluster

The DAX is starting to weaken from the crucial 11,861 level, which encompasses last Monday’s high and the 50-period simple moving average.

A break back below 11,792 would be a bearish indicator for the short term, while an hourly close below that level would point towards a move back into trendline support around 11,750. Otherwise, a break back above 11,861 would point towards a continued resurgence for the index.

DAX chart

DAX chart

DAX chart

Dow likely to push through triangle resistance

The Dow Jones continues to move gradually higher, with the index knocking on the door of 20,835-20,845 a number of times this week. With that in mind, an hourly close above the 20,845 level would provide us with a bullish breakout signal.

Conversely, while we could see a push back below the current trendline support, we would need to see an hourly close below 20,769 to provide us with a less bullish outlook.

Dow Jones chart

Dow Jones chart

Dow chart

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