Levels to watch: FTSE 100, DAX and Dow

European markets are trying to follow their US counterparts higher. However, with the FTSE 100 just trying to rally out of a period of sideways consolidation, the index is far from the bullish picture seen in the Dow.

FTSE 100 breaking through consolidation top

The FTSE 100 is pushing through the 7325 resistance level this morning, with the index looking to drive upwards from a period of consolidation that has been in play over the past two weeks.

With that in mind, there is likely to be a push higher from here as long as we see a closed candle above that 7325 level. Should that break occur, watch for a potential move higher, even if this is just a retracement of the sell-off from 7536.

DAX rallies out of wedge breakdown

The DAX has managed to regain the 12,136 level, proving that the wedge breakdown seen on Monday was a retracement before building on the recent rebound.

Nevertheless, this recent rebound looks like a retracement of the wider sell-off from 12,600 and thus any further near-term upside should be considered as a potential temporary move, with Fibonacci resistance in play.

Dow rallies through key resistance

The Dow Jones rallied through the 26,224 resistance level yesterday, building on the notion that we could see record highs in the not-so-distant future. The uptrend remains intact and thus further gains seem likely as long as we create higher highs and higher lows.

With that in mind, there is a chance we could see the index turn lower for the short term, but this would be perceived as a buying opportunity, with a drop below 25,954 required to negate this bullish outlook.

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