Levels to watch: FTSE, DAX and Dow

Indices look primed to continue their recent run of form, as early gains push into or through key resistance levels.

FTSE looks to break higher once more

The FTSE 100 is moving higher once more this morning, following a pullback to the 50-period simple moving average (four-hour) and the 6624 level (July 4 resistance level and 38.2% pullback). The key here is whether we see an hourly close above 6744 to spark another leg higher.

As such, a bullish view remains in play, with a new bullish signal coming with an hourly close above 6744. We would need to see an hourly close below 6430 to negate this view.

DAX breaks towards channel top

The DAX is breaking higher once more this morning, in a continuation of the ascending channel pattern that has been in play over the past week. Crucially we are seeing a break through the highly notable 10,121 resistance level, which has often marked a turning point for the index.

As such, a bullish view remains in play, with an hourly close below 9976 required to negate this. Watch out for near-term resistance, with a trendline and Fibonacci (76.4%) convergence around 10,170-10,200.

Dow remains within channel for now

The Dow Jones is back at the top of a range which has been in place since Thursday. Given the uptrend in play, the breakout is certainly expected to be to the upside.

As such, an hourly close above 18,572 would be required to provide a new bullish signal for the next leg higher. To the downside, watch out for support provided by an ascending trendline and the 50-hour SMA.

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