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Levels to watch: FTSE, DAX and Dow

Global markets break higher, with US markets finally joining their European counterparts.

IG Analyst

Publication date : 2017-06-02T09:37:17+0100

German stock exchange

Source: Bloomberg

FTSE breaks higher once more

The FTSE has broken to a new high this morning, confirming the bullish outlook held in line with the long term uptrend. The price is now pulling back and it makes sense to use retracements as buying opportunities once more.

That being said, given the sharp move higher and chance of a pullback, coupled with the impending payrolls figures and weekend, it may make sense to just look for short-term moves. As long as we do not break below 7496, then a bullish view remains in play.

FTSE chart

FTSE chart

FTSE chart

DAX breaks higher from triangle pattern

The DAX has broken higher in style following a triangle breakout earlier this week. This confirms the bullish outlook we had and takes us some way towards the 12,850 all-time high region. With that in mind, there is obviously still room for further upside, yet it is worth noting that we could easily see a sizeable retracement soon enough given the size of that original move.

Much like the FTSE, it is worth being nimble and short-term with new positions, or play retracements as a means to attain a decent risk to reward. The bullish outlook remains unless we break back below 12,525.

DAX chart

DAX chart

DAX chart

Dow breaks higher from consolidation

The Dow Jones has joined in the fun, with the index breaking higher from consolidation. Crucially, we have seen the index clear out the 21,113 previous high, meaning that there are precious few resistance levels of note to worry about.

However, to the downside, the previous all-time high of 21,171 is certainly worth watching out for as new support. Once more, given the expended nature of the current price, it would make sense to look for longs on retracements, utilising short-term swing lows for a better risk to reward.

Dow Jones chart

Dow Jones chart

Dow Jones chart

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