Levels to watch: FTSE, DAX and Dow

The DAX leads markets higher, while the FTSE lags behind as indices hope to continue their recent bullish trend.

A man looking at screens
Source: Bloomberg

FTSE downside expected

The FTSE 100 has been drifting lower this week and as of yet, we have seen not signs that this will stop. There is a warning sign, in the form of a failure low, which didn’t move below the earlier low set yesterday. This has created a new symmetrical triangle for the week, which is subsequently being broken to the downside this morning. Thus, further downside is expected unless the price closes above 6330 resistance. Support levels to watch are at 6249, 6228 and 6209, while resistance at 6330 and 6368.

DAX moves lower

The DAX has also moved lower once more this morning, with the index clearly creating new lower highs and lows. While this overall move could represent a retracement of last week’s rally, for now the trend is in play and thus it is worth following until it is negated. Thus the bearish view holds unless the price closes above 11,080. Support levels to watch are at 11,000, 10,959, 10,892 and 10,867, with resistance at 11,080 and 11,166. 

Dow consolidates

The Dow Jones is looking a lot like the FTSE and DAX prior to the break lower, and thus it seems likely that we will see the Dow break lower from this consolidation. The 50-hour SMA seems to be providing resistance following previous support and this encourages the bearish view. Thus we are bearish unless the price closes above 17,869. Support levels to watch are at 17,769, 17,748 and 17,686, with resistance at 17,869 and 17,916.

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