Levels to watch: FTSE, DAX and Dow

Yesterday’s FOMC hike leads to a market rally, which appears to be continuing this morning. Are we set for another day in the green?

Traders in Indonesia
Source: Bloomberg

FTSE breaking higher
The FTSE is breaking higher once more this morning, following on from an overnight period of sideway consolidation. The triangle breakout was less important than the move back above yesterday’s high of 6150.

This gives confidence of another day in the green and the closed hourly candle in particular provides a strong bullish signal. As such, given the trend coming into today’s upside break, the bullish bias holds, with resistance levels of 6174, 6197 and 6209 in view.

The bullish view will hold unless we see a closed hourly candle below 6117, which would subsequently look towards 6100, 6091 and 6070 support levels.

DAX breaks to new weekly highs
The DAX has hit a new high for the week, punching through 10,653 resistance. With price currently pulling back, it is likely we will find support on resistance for another move higher.

Given the bullish trend in play over the past three trading days, coupled with the close above 10,653, further gains are expected, with resistance levels of 10,719 and 10,805 in view.

Conversely, a closed hourly candle below 10,524 would bring a more bearish outlook, with 10,486 and 10,448 the next support levels. 

Dow sees bullish wedge breakout
The Dow Jones has broken through trendline resistance this morning, confirming the bullish nature of the overnight falling wedge.

The bullish outlook will hold unless we see a closed hourly candle below 17,686 support. Resistance levels of note are at 17,769, 17,783 and 17,862. Meanwhile, below 17,686, support levels of 17,608 and 17,486 come into play. 

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