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Levels to watch: FTSE, DAX and Dow

After a good performance yesterday, bullish momentum is beginning to flag.  

German stock exchange
Source: Bloomberg

FTSE 100 – a close above 7385 on the way?

Although the FTSE remains stuck in the 7300-7385 range, yesterday’s drop back from the highs managed to create a higher low.

Now it is up to the bulls to post a close above 7385 in order to clear the way for a sustained move higher. A failure to push on above this level could see a return to 7300, and if this breaks a drop to 7260 or lower could be in the offing. 

DAX needs a push above 12,535 for a broader recovery 

Here the DAX has managed to push above the recent intraday resistance zone around 12,485, and now it needs to clear 12,535.

A push above here suggests a broader recovery is in play, potentially moving on to 12,659 and 12,785. Bears will need to get the price back below 12,408 and then 12,300. The price action of the past two weeks suggests that 12,300 is a strong zone of support that will pose a problem for those looking for a bigger drop.

Dow dips to 12,290 have brought buyers

The Dow Jones has essentially gone nowhere for a month, but dips to 12,290 have seen buyers emerge. Now the bulls need to step up and push the price above 12,500 and then 12,563.

Sellers will need to get the price back below 12,171 to really suggest a bigger move lower is in the offing. 

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