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Levels to watch: FTSE 100, DAX and Dow

The FTSE 100 is leading the charge higher this morning, while the DAX and Dow continue to consolidate after recent gains.

All trading involves risk. Losses can exceed deposits.
Dow Jones
Source: Bloomberg

FTSE 100 breaks higher from key support zone

The FTSE 100 is breaking higher after consolidating above a crucial support zone between 7435 and 7461. The index has clearly moved out of the downtrend of recent months, with the move above that zone of previous highs providing a bullish breakout. The subsequent retracement proved short-lived.

Given the respect of that zone once more, it looks like we are set for another period of upside, where a bullish outlook is back in play unless we see a move back below yesterday’s low of 7454.

FTSE 100 chart

DAX consolidating after recent gains

The DAX has been moving in a very convincing uptrend of late, as we see the market extend the bullish breakout seen in early September. The price has been consolidating over the past two trading days, with the breakout from this zone key to providing the directional bias.

As such, wait for an hourly close above 12,982 for a bullish bias, or below 12,893 for a potential pullback. Ultimately the wider bullish bias is clear, and thus pullbacks would be seen as buying opportunities. 

DAX chart

Dow awaits next move amid sideways trade

The Dow Jones remains in a consolidation phase, following the creation of new all-time highs earlier in the week. With that in mind, watch for an hourly close above 22,685, or below 22,635 for the bias going forward.

Once again, pullbacks would simply be seen as buying opportunities given the clearly defined uptrend. 

Dow Jones chart

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