Levels to watch: FTSE, DAX and Dow

Yesterday’s strong rally for the indices has brought us back into a bullish mindset, which will likely be confirmed or negated in today’s key session.

US traders
Source: Bloomberg

FTSE into range resistance once more

The FTSE 100 is attempting to break through 6179 resistance once more this morning, following on from a temporary retracement last night. Given the fakeout last week, the new breakout level is 6197, where a break above this would bring about the possibility of a surge of directional volatility.

For now, the short-term uptrend is very convincing, yet it seems prudent to await a response to the 6197 resistance to gain a directional bias. Above that level, the resistance levels to watch are 6224, 6237 and 6249. Alternatively, a closed hourly candle below 6158 would bring a more bearish short term view, with 6140 and 6105 the next levels in view. 

FTSE

DAX continues to charge higher

The DAX is breaking higher in a convincing manner this morning, following on from yesterday’s gains. This index is also approaching a crucial resistance zone, with the 10,084-10,121 area marking a significant hurdle to overcome.

For now, the index remains clearly northbound and thus pullbacks are likely to be bought. Current resistance is provided by a descending trendline (currently 10,050), followed by 10,084 and 10,096. We would need to see an hourly close below 9945 to negate the current short-term bullish trend.

DAX

Dow approaching near-term resistance

The Dow Jones is breaking higher this morning, following a shallow retracement overnight. Yesterday’s substantial rally set-up a possible recovery path for the index following a disappointing week for the index just gone.

Given that we saw it break through the key 17,738 resistance level yesterday, there is a good chance of a recovery this week, where a closed hourly candle above 17,756 today would be likely to spark another strong move higher with 17,801 the next key resistance level.

A closed hourly candle below 17,684 would negate this bullish view. 

DJ

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