Levels to watch: FTSE, DAX and Dow

Indices have marked time so far this morning, but remain in a bullish pattern.

Data on a screen
Source: Bloomberg

FTSE 100 eyes 6740

On today’s ‘to-do’ list is a daily close above the 200-day simple moving average (6740). This eluded us yesterday but is crucial to the continuation of the rally. Having filled the gap from late June the index looks well set to continue its gains, assuming the Greek deal does not fall apart.

Next targets for me lie around 6820, the 50-day SMA, and then 6875, resistance levels that were established in mid-June. With daily stochastics still firmly bullish I expect a continuation of the gains we have seen in July so far.

DAX could target 12,000

Gains have stalled this morning, but the upward rally is still intact, with 11,600 still the near-term target. Beyond this the index must still breach the rising trendline from the October 2014 lows, which comes into play around 11,800.

The index tried to break this in late June, but Greek woes played their part in keeping it from moving higher. Further upside targets lie around 11,910 and then 12,000.

Dow could move to mid-June highs

The index is now on the cusp of breaking above 18,000 once again – it failed yesterday, stymied by the 50- and 100-day SMAs (17,980 and 17,972 respectively), after a day that saw the index gain 300 points.

With daily stochastics now bullish it makes sense to wait for intraday pullbacks, perhaps in the region of the 50-hour EMA (17,866), but overall I expect a continuation of the upward move, towards the mid-June highs of 18,200. 

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