Levels to watch: FTSE, DAX and Dow

The indices are on the charge higher, with the Dow hitting new highs and the FTSE rallying heavily. Could this move continue apace?

US traders
Source: Bloomberg

FTSE punching higher once more

The FTSE is pushing in towards the 76.4% retracement this morning, with the index continuing its recovery following a drop into the 7356 support level on Monday.

The reaction to the 76.4% is going to be key here, with a confident break through it pointing towards a continued resurgence through 7516. However, given the recent flatlining lows, there is also a potential for a more bearish picture to come into play should that Fibonacci resistance be respected. 

DAX rallies into key resistance

The DAX is rallying within a rising wedge pattern. The push higher within this bearish pattern points towards a potential weakening in the near future, with the 12,310 level the prime candidate for such a move to come into play.

Given the wider uptrend in play and recent 76.4% respect, there is a good chance that any such weakness could be fleeting. Keep an eye on how the market responds to the 12,310 level, with a break through pointing towards further gains as we approach the wedge apex.

Dow likely to push higher once more

The Dow Jones managed to push higher to new all-time highs yesterday, following a retracement into the 76.4% Fibonacci level. We are now seeing a rally out of a symmetrical triangle, with an hourly close above 21,627 providing confirmation of a likely charge onwards towards the previous highs once more.

A break back below 21,598 would negate this short-term bullish outlook.

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