Levels to watch: FTSE, DAX and Dow

European markets continue to outperform the US, with the DAX looking particularly interesting after a triangle breakout.

Wall Street
Source: Bloomberg

FTSE continues to gain

The FTSE has remained within its uptrend with the price managing to break through 7556 resistance yesterday, albeit temporarily.

The current rising wedge pattern points towards the potential for this market to pull back soon. Yet, until we see a break below the first swing low (7496), it seems likely we will see further upside. 

DAX triangle breakout points to further upside

The DAX broke through trendline resistance yesterday, providing the basis for a potential push higher from here. That would conform to the wider uptrend, yet it could be sensible to wait for an hourly close above 12,712 for confirmation.

We would need a break back below 12,530 to negate this bullish outlook.

Dow turning lower from Fibonacci resistance

The Dow Jones has managed to claw back some ground following sharp losses yesterday. However, we have since seen those gains falter at the 76.4% retracement, with the downtrend remaining intact.

With that in mind, a bearish short term view remains, unless we manage to break through 21,067 resistance.

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