Levels to watch: FTSE 100, DAX and Dow

Recent downside for indices appears to be slowing, with European markets starting to show signs of a resurgence.

FTSE 100 consolidates within triangle formation

The FTSE 100 is trading within a symmetrical triangle formation, coming off the back of Monday’s pullback.

With the price having just recently hit the upper threshold of this pattern, there is a good chance we will see short-term downside. However, for the breakout, watch for an hourly close above 7254, or below 7205 for a signal of where we go next.

DAX downturn hits trendline support

The DAX has been regaining ground following a move into trendline support.

There is a strong chance we could see a more protracted move higher should we see a break through the near-term 12,504 resistance. Alternatively, we would need a break below 12,332 to bring a good chance of further downside.

Dow downside brings index into key support

The Dow Jones is trading lower in a much more consistent manner, with short-term intraday lower highs and lower lows in play off the back of a bearish rising wedge breakdown. This is bringing us into the 24,805 support level, which represents the first major swing low out of that wedge.

A break below that 24,805 level would provide a signal that we are set for further weakness going forward. Until then, watch for a potential rally up through recent intraday swing highs, such as 24,985 and 25,025, to provide a bullish outlook.  

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