Levels to watch: FTSE, DAX and Dow

Indices break higher once more, with the DAX in particular pushing to a new three-month high.

A man looking upwards
Source: Bloomberg

FTSE ekes out gains

The FTSE has been seeing very minimal gains over the past 24 hours, following on from a big rally late into Tuesday’s trading. However, we continue to create new highs and while we are seeing a pullback, the key support level of 6319 remains intact. Thus while this chart is clearly lacking the momentum, we have not yet seen a close below 6319, and therefore the bullish outlook remains.

A close below 6319 would provide a warning sign that would need to be confirmed by a lower high. Support levels to watch are at 6330, 6319 and 6300. Resistance levels in view are 6356, 6368 and 6376.

DAX at three-month high

The DAX has managed to break through the absolutely key 11,166 resistance level and appears to have found new support on this level. This is a great bullish sign which goes to simply add further confirmation to the bullish view provided by the continued highs and higher lows. Thus a bullish view remains, with very few notable resistance levels in close proximity. Subsequently 11,448 and 11,671 represent the next major levels. Alternately, a close below 11,148 would bring a more bearish intraday outlook, with support levels at 11,143, 11,116 and 11,058.

Dow triangle points to upside

The Dow Jones has been trading a lot more conservatively, with the price now forming an ascending triangle formation. This is a bullish pattern which confirms the view taken by the overall uptrend seen throughout the past ten days. As such, a break and close above 17,862 seems likely for another move higher in the Dow. In which case, resistance levels of 17,915 and 17,978 come into view. A close back below 17,807 would provide a more bearish view, where 17,776 and 17,655 would be the next major support levels. 

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