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Levels to watch: FTSE 100, DAX and Dow

European and US indices are starting to look more positive, with yesterday’s rebound providing increasingly bullish signals.

FTSE 100 pushing higher yet again

The FTSE 100 managed to rebound from the 200-day simple moving average (SMA) yesterday, with the index pushing back into the highs.

This points towards further upside to come, with the 76.4% retracement representing the next level of resistance. There is a strong chance we will see another push higher from here, with a break below 7635 required to negate this bullish view.

DAX rebounds from support

The DAX has also rallied from a crucial support level, with the price pushing higher from the 12,535 low respected on 25 July.

The ability to break above the 12,719 swing high is going to be key in determining whether we continue to push higher over the near term.

Dow rally signals next leg higher

The Dow Jones has broken through the 25,505 swing high, with the price pushing into the 25,592 resistance level.

The rally through 25,505 signals a likely end of the weakness seen in the last week of July. However, for greater confidence, look for a break and hold above 25,592 to confirm that bullish signal. 

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