Levels to watch: FTSE, DAX and Dow

Indices’ retracement looks to be over as bullish sentiment returns.

A man looking at multiple screens
Source: Bloomberg

FTSE retracement likely to provide next leg higher today

The early FTSE gains seen yesterday gave way to a consistent bout of selling which has finally been broken by a single move higher so far this morning. Given the recent uptrend in play, there are no signs of a possible reversal yet, and thus the likeliness is that we will see the FTSE continue its recovery, with another leg higher today.

The 6727 resistance level is clearly being respected for now, yet as long as the price remains above 6680 I expect another move higher as we seek to regain the 6808 level. For now, I look towards 6766 as the first level to regain, with a break above that likely to bring another round of gains.

DAX continues to move higher following brief respite

The resurgence of the DAX has been one of the stories of the week, with yesterday’s European session in particular showing a pretty one sided picture in terms of price action. However, overnight trading has pulled the price back in a similar manner to the FTSE. This appears to be over and the bullish theme is continuing. I am thus bullish and look for a move above 11,657 resistance for another leg higher as we attempt to regain the 11,800 level.

Dow pulls back yet bullish sentiment remains

Yesterday’s early strength gave way to a somewhat bearish US session. However, given the creation of a new higher high, coming from a base of clear historical support at 17,465, this gives me reason to believe we are going to see further upside in the Dow Jones. That would mean a break higher, back towards 17,663. I would only become less bullish should the price break below 17,465.

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