Levels to watch: FTSE 100, DAX and Dow

Indices move into notable resistance levels, with a potential bullish outlook coming into play if broken.

FTSE 100 drops from trendline resistance

The FTSE 100 remains within a very tight ascending triangle formation, with directional volatility dropping out of the market in the second half of the week.

As such, we await a breakout, with a rally through 7271 providing a bullish continuation signal. Meanwhile, a fall below 7228 would point towards a more bearish outlook for the near term.

DAX rallies into crucial resistance level

The DAX has continued its ascent, with the price pushing towards the key 12,477 level. That historical peak from mid-March is a crucial hurdle which would provide a more bullish medium-term picture if broken.

With that in mind, the ability or inability to break through 12,477 will dictate the state of play for the day. To the downside, a break below 12,394 would be needed to provide a more bearish short-term picture.

Dow rallies into trendline resistance

The Dow Jones has rallied up into a crucial area of resistance, with the price moving into trendline resistance and the 24,637 swing high.

A break above there would signal a more bullish shift for the pair, highlighting why this area of resistance is so important. With that in mind, there is a good chance we will start to turn lower from here, with a break through 24,637 required to bring a more optimistic outlook.

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