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Levels to watch: FTSE 100, DAX and Dow

The week continues to go well for the bulls, with gains in Europe and a new all-time high for the Dow.

Good times return for FTSE 100

The FTSE 100 has continued its impressive bounce, heading towards resistance around 7490.

Intraday dips remain buying opportunities unless we see a close below 7350, the lows from Thursday’s session. Above 7490, the downtrend line from the May highs comes into play, suggesting resistance around 7620.

DAX climbs higher once more

The rally has carried the DAX back to the 50-day simple moving average (SMA) and the 12,400 area of resistance.

From here the June downtrend line comes into the picture around 12,480. A move above the August high of 12,602 is needed to break the sequence of lower highs. A close below 12,165 is needed to suggest a more bearish view, but even then rising trendline support from the September low comes into play around 12,100.

Dow surges to new record

The Dow Jones has finally joined the group of indices making new all-time highs, having slogged its way from the February lows around 23,000.

Rising trendline support from the lows of the week around 26,000 would suggest potential buying around the 26,600 mark, with a break below this opening the way to support at 26,400 and then 26,240. A much deeper retracement takes the index back to the 25,820 support zone of early September.

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