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Levels to watch: FTSE, DAX and Dow

There seems little stopping bullish momentum at present, with US indices continuing to lead the way as they hit fresh record highs. 

German stock exchange
Source: Bloomberg

FTSE 100 stumbling slightly, but still up

The index has stumbled at 7300, having moved steadily higher at the end of last week. It is important to note that we could see the price move to 7220, and it would still be an uptrend off the lows of early February.

Additional support could be found at the 100-hour simple moving average (7234), and a bounce from here would suggest a return to 7300, with additional resistance at 7314 and 7360.

DAX bouncing back 

Monday’s bounce has seen the index manage to close the gap down from 30 January, moving back above 11,800 once more. Overbought intraday conditions are being unwound, with a first area of support around 11,720, the high from Friday’s session.

We would need to see sustained action below 11,650 to firmly indicate the rally has run its course. Beyond 11,800 lies 11,872 and then on to 12,000.

Dow still going strong 

We have barely seen any pullback here, with the breakout to new all-time highs seeing significant follow-through. The uptrend off the February low around 19,850 is now some distance away, with potential support at 20,321 and 20,208 before the rising trendline is tested.

For now, only a close below 20,100 would really negate the bullish outlook here. 

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