Levels to watch: FTSE, DAX and Dow

Indices continue to rally sharply, with the DAX creating a bullish double-bottom. However, with the Dow now approaching all-time highs, will we see this threshold breached?

Trader walking in front of data charts
Source: Bloomberg

FTSE continues to gain ground

The FTSE created a fleeting break higher this morning, with gains being wiped out soon after. We are clearly trending higher in a convincing manner and as of yet, there is no sign this is set to end.

With that in mind, a bullish outlook is in play unless we see an hourly close below 6600. The next major resistance levels in view are 6718 and 6753.

DAX double-bottom points to further upside

The DAX is seeing a sharp move higher at the open today, following the completion of a double-bottom formation. Given the bounce from a major trendline support (on the monthly chart), coupled with the creation of a double-bottom formation, it seems likely we are going to push on from here.

The next resistance level of note is at 9928, yet the key here is going to be playing the pullbacks within the uptrend. 

Dow approaches fresh highs

The Dow Jones has seen further gains, pushing the index towards the crucial all-time high of 18365. This is a region of resistance that has often led to reversals and as such it makes sense to be cautious until we see an hourly close above 18,365.

With that in mind, watch out for the potential creation of a topping reversal pattern within the 18,189-18,365 resistance zone.

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