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Levels to watch: FTSE 100, DAX and Dow

Indices move into notable resistance levels, with a potential bullish outlook coming into play if broken.

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FTSE 100 drops from trendline resistance

The FTSE 100 remains within a very tight ascending triangle formation, with directional volatility dropping out of the market in the second half of the week.

As such, we await a breakout, with a rally through 7271 providing a bullish continuation signal. Meanwhile, a fall below 7228 would point towards a more bearish outlook for the near term.

DAX rallies into crucial resistance level

The DAX has continued its ascent, with the price pushing towards the key 12,477 level. That historical peak from mid-March is a crucial hurdle which would provide a more bullish medium-term picture if broken.

With that in mind, the ability or inability to break through 12,477 will dictate the state of play for the day. To the downside, a break below 12,394 would be needed to provide a more bearish short-term picture.

Dow rallies into trendline resistance

The Dow Jones has rallied up into a crucial area of resistance, with the price moving into trendline resistance and the 24,637 swing high.

A break above there would signal a more bullish shift for the pair, highlighting why this area of resistance is so important. With that in mind, there is a good chance we will start to turn lower from here, with a break through 24,637 required to bring a more optimistic outlook.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

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This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.