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Levels to watch: FTSE 100, DAX and Dow

The Dow leads the way yet again, with a symmetrical triangle pointing towards further upside. Meanwhile, the FTSE 100 looks likely to push higher, with the DAX continuing to underperform.

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FTSE 100 rallying from key support level

The FTSE 100 has managed to turn higher from the crucial 7474 support level. That level represents not only the near-term support, but also the resistance late December peak.

A break below that level would have pointed towards a break lower in the short term, given the completion of a head and shoulders pattern. However, the respect of that level has provided a bullish view, and an hourly close above 7511 would provide us with greater confidence. Alternately, a break below 7474 would negate this bullish outlook.

DAX attempts to regain lost ground

The DAX sold off back below the Tuesday low of 13,093 yesterday, as the index continues to lag its peers.

This move looks like a retracement of the 12,862-13,242 move, with the price forming a bullish wedge pattern. That means that while we could see further downside in the near term, ultimately, the exit of this period is likely to bullish. 

Dow breaking higher from symmetrical triangle

The Dow Jones remains the market to be in, with the index on a remarkably consistent uptrend since hitting the 76.4% Fibonacci retracement.

In the near term, we have seen the price form a symmetrical triangle, with the breakout bringing a renewed bullish outlook. As such, further upside is likely, with a break below 24,587 required to negate the bullish view. 

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