Levels to watch: FTSE, DAX and Dow

Greek woes put the buffers on indices for now, yet there could be further upside to come.

A man looking at charts and data
Source: Bloomberg

FTSE bounces from key support, pointing to further gains

The FTSE may be moderately lower today, however this is likely to be short term as long as the price remains above 6808. That key support level represents the May swing low, and given the break back through it yesterday, today’s retest is a bullish signal and would have been a great entry for those that managed to get it. Nevertheless, I can still see further gains despite the Greek worries, and believe we will see a strong move higher over the coming week. A break back below 6808 would invalidate this view. 

FTSE chart

DAX bounce hits the buffers, but major support in view

Yesterday’s decision by the IMF to leave discussions with Greece put the buffers on bullish momentum that had gathered following a bounce upon the 38.2% retracement. Interestingly enough, yesterday’s resistance came in the form of the 23.6% retracement, so it is clear that the Fibonaccis are being well respected.

I am aware that the fundamental picture could lead to further downside, but personally I am looking for further upside and see the 11,166 support level as the backstop to any near-term weakness. Having gained approximately half of the channel back, I expect to see us move back towards the 11,550 region to then see the DAX sellers come back into play.

DAX chart

Dow at triangle apex as we await next move

The Dow Jones price is currently sitting perfectly on the apex of the symmetrical triangle. Yesterday’s shooting star candle points to possible weakness, but I could see a break higher with the MACD yet to complete its move upward and stochastic still in the lower half of its range. Ultimately we continue to see higher lows on the intraday market, and thus while the price is above 17,986, things look bullish for a move back above 18,115.

Dow Jones chart

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