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FTSE bounces from key support level, Awaiting a triangle breakout for DAX, Dow at crucial crossroads

FTSE bounces from key support level

The FTSE has reversed higher once more from the 6060 support level which underpinned price over the past two months. Typically we have seen any such bounce rise to the 6220-6237 region and thus there is a good chance we could see a more bullish phase should this persist. Having passed through a number of near term resistance points, the next hurdle would be at 6136. With the market well overstretched and stochastic highly overbought, there is a good chance we could see a pullback soon. Thus it makes sense to either await a break above 6136, or else looking for a potential long upon a pullback. A bearish view would be taken with a break through 6060.

Awaiting a triangle breakout for DAX

The DAX is showing a clear inability to break out of this current symmetrical triangle formation, with long upper wicks into the 50-hour SMA highlighting a possible retracement lower. Ultimately, we will take our lead from the breakout, with a closed hourly candle above 9964 indicating a bullish outlook for a move back towards the 10121 region, or a closed hourly candle below 9760 for expectations of a strong selloff.

Dow at crucial crossroads

The Dow has seen a strong move higher overnight, with the index currently attempting to break through 17511 and trendline resistance. A strong closed hourly candle above this level would point towards the possibility of further gains this morning. However, given that we are at such a key junction, this break needs to occur to negate the downtrend we have in place currently. Key resistance levels above 17511 are found at 17637 and 17761. Meanwhile support levels of note are at 17415, 17396 and 17328.

Disclaimer: Statements in this article should not be considered investment advice, which is best sought directly from a qualified professional.