Levels to watch: FTSE, DAX and Dow

Indices drift lower overnight and with key support levels in view, any further downside could question the current bullish outlook.

Source: Bloomberg

FTSE at support

The grind lower seen in the FTSE 100 has led price back to the crucial 6227 support level, which appears to be holding for now. The inability to create a new high yesterday evening, followed by this current pullback to support, amounts to a clear warning sign that we could see the FTSE start to turn lower once more.

However, as long as price remains above 6227, the bullish trend remains in play, where a move towards the 6280 and 6300 resistance levels could occur.

That being said, should we see a close below 6227, it would bring a more bearish view where support levels of 6209 and 6174 come into view. 

DAX rally fades

The strong DAX rally seen yesterday faded into the US session, where price bottomed out at 10,867. The uptrend clearly remains in play, despite the choppiness we have seen over the past 24 hours.

With price attempting to push higher once more, the bullish trend points towards a move higher, with resistance levels at 10,979, 11,000 and 11,050 in the near-term.

A close below 10,867 would provide the potential for a move lower, where support comes in at 10,783 and 10,726.

Dow approaching support

The Dow Jones has been drifting lower overnight, with price looking likely to reach 17,448 for the fourth time in just over 24 hours. As such, a bounce from 17,448 remains likely given the uptrend and the previous respect of this level.

However, given the failure to create a new high, there is an unorthodox head and shoulders in the making, where the break below 17,448 would activate a bearish view.

Ultimately, if 17,448 holds, then further upside seems likely, with 17,549 and 17,600 the near-term resistance. However, a close below 17,448 would bring a bearish view for the day, with 17,338 the next notable support level. 

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