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Levels to watch: FTSE, DAX and Dow

Despite rallies across all three indices, questions are being asked with crucial resistance levels in play. The ability to break through these levels will be key to how we set up for the coming week.

All trading involves risk. Losses can exceed deposits.

FTSE rallies into key resistance zone

The FTSE 100 has managed to post another leg higher this morning, following on from the recovery staged on Friday. However, we are now seeing price brought back into a crucial resistance zone which has limited 45 days’ worth of upside.

The ability to break and post an hourly or four-hourly closed candle back above 6955 would provide us with the bullish signal that recent gains are set to continue. Until that happens, the recent ascending triangle remains in play and it would be worth watching out for any intraday reversal signals for a possible move back down to trendline support.

Ultimately the ability to break above 6955 will be key to determining the state of play for the coming days.

FTSE 100 price chart

DAX approaching major resistance within channel

The DAX has managed to regain ground, bringing it roughly halfway into the recent descending channel pattern. For us to recover the other half, the key will be the ability to break and hold above the 10,578 mark.

Currently, we are seeing some indecision forming marginally below that level and as such, we are looking for either a bearish reversal or break through resistance at these levels. Watch out for either on an intraday basis for a clue as to the next significant move.

DAX price chart

Dow weakening from last week’s highs

A similar story prevails for the Dow Jones, with price having rallied into a crucial resistance level and now asking questions. The 18,365 level is the line in the sand for the day and will provide us with a key gauge of where we see the index moving next.

As such, an hourly close above 18,365 would provide us with a clear bullish mindset, whereas an intraday reversal signal from that level would point towards a possible move back down to 18,245, 18,189 and even 18,150 support levels.

Dow Jones price chart

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