Levels to watch: FTSE, DAX and Dow

Indices are marching higher as the day gets underway, as US markets rejoin the fray following their holiday yesterday. 

A person with data reflected in their glasses
Source: Bloomberg

FTSE 100 eyes 6200 as buyers return

After a session yesterday that resembled a paint-drying extravaganza, the index has finally begun to move again. Dips towards 6050 continued to bring out the buyers yesterday, and the index now looks set on moving back in the direction of 6200, and the September peak so far around 6216.

There continues to be rising support from the trendline off the August lows, with support coming in around 6130 on the four-hour chart. The daily RSI has moved closer towards the 50 mid-point, indicating that buyers continue to have the upper hand. However, the index has still to break out from current triangle, although a move above 6200 would accomplish this. 

DAX targets 10,370

The rally continues here, with daily stochastics doing well to hold the course higher despite the choppiness we have seen. The next move is towards 10,370, assuming that the rally holds. Downside support is to be found around 10,030 and then on to 9937. As with the FTSE 100, the DAX is now finally putting the current triangle formation under pressure, with a bullish breakout confirming that the next move is still upwards.

Dow recovers lost ground as RSI moves higher

Futures are soaring away, recovering most of the ground lost on Friday. The Dow Jones is now targeting 16,464, and above here the next move is towards 16,700. As with the FTSE 100, the daily RSI continues to move higher. A move back below 16,200 would put the index back into consolidation mode, but it would take a drop below 16,000 to suggest that the sellers are really in control once more. 

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