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Levels to watch: FTSE, DAX and Dow

Gains proved fleeting yesterday, but support has held on the FTSE and Dow so we may see a fresh attempt to push higher.

Traders in the New York Stock Exchange
Source: Bloomberg

FTSE 100 back below 7200

What looked like a very bullish day yesterday turned sour in the afternoon, with the index unable to hold gains above 7200, and, indeed, 7200 itself. However, the 7160 was held yet again so, for now, the trend is still moving upwards.

Bulls need a daily close above 7200 and then above 7236, with further targets still at 7276 and 7348. A close below the rising 50-day simple moving average (7092) would be a real sign of a bigger drop.

DAX holds on to key support

The DAX lost most of its gains yesterday, but continues to hold above key support around 11,400. A real move higher would only be seen with a close above the weekly pivot at 11,663. This would then open the way to 11,800 and 11,923.

Bears are likely to be disappointed unless we see a drop and close below 11,400.

Dow Jones dips from record highs

Fresh record highs for the index yesterday were not met by further bullish momentum, with gains receding as the session ground on. However, the 20,050 area held as support, and we have seen more buying pressure develop.

The price now needs to move above 20,150 to maintain momentum. A close below 20,000 would likely be a bearish development, even if it resulted only in a move back to the low of the past week around 19,800. 

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