Levels to watch: FTSE, DAX and Dow

FTSE leads Europe higher, as US markets flounder somewhat. Will we see new all-time highs in the UK this week?

New York Stock Exchange
Source: Bloomberg

FTSE off to a flier

The FTSE 100 has punched through a crucial resistance level at 6950, with subsequent support being used as a base to then push higher this morning. With price now just 73 points away from all-time highs (7127), it seems likely we will see the index push into new territory this week.

As such, the current bullish momentum is expected to continue, yet its new order may make more sense within retracements or continuation patterns as it allows a better placement of stops. With that in mind, a bullish outlook remains unless we break below the most recent swing low. On this occasion that is 6956.

DAX breaking through key resistance level

The DAX is also pushing higher in a convincing manner this morning, following on from a shallow retracement yesterday. The ability to post a closed hourly candle above 10,578 would be key to further gains, where the index would subsequently look towards the top end of this recent channel (10,700).

This bullish outlook remains unless we see an hourly close below 10,455. 

Dow seeks to follow European lead

The Dow Jones is lagging somewhat in comparison, with the index still stuck in the middle of a month long period of consolidation. The key bullish breakout would come with an hourly close back above 18,365.

For now, it seems likely we will see the index push higher, with an hourly close above 18,281 pointing towards further short-term gains.  A break below 18,197 would provide a more bearish short-term view.

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