Levels to watch: FTSE 100, DAX and Dow

Sterling strength is keeping the FTSE 100 subdued, while the DAX and Dow are in a much more optimistic mood thus far.

Source: Bloomberg

FTSE 100 breaks below key support level

The FTSE 100 broke below the notable 7380 support level yesterday, bringing the price back towards the 7349 low.

This brings to mind the possibility of a wider retracement into 7288, should we break below 7349. As such, watch out for that level as a key determinant of where we will go in the short term.

DAX sell-off brings new retracement to buy into

The DAX is punching higher following a retracement overnight. This retracement came close to the 76.4% level, passing the 61.8%.

Given yesterday’s bullish triangle breakout, this provides us with a strong conviction that the index will push higher from here, as is playing out so far. A bullish outlook remains in play, unless the price breaks below the 12,964 swing low.  

Dow pushes onwards within consistent rally

The Dow Jones has provided daily record highs, with yesterday’s triangle consolidation leading the way to yet another push into fresh territory.

This trend is expected to persist, with a break back below 23,890 required to negate this bullish short-term view. With that in mind, consolidation and retracements are viewed as buying opportunities, rather than reversal signals.  

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