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Levels to watch: FTSE 100, DAX and Dow

The US markets continue to dominate, with consolidation in the FTSE 100 and DAX continuing, despite fresh highs for the Dow.

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FTSE 100 challenging key support level

The FTSE 100 is testing the 7764 support level once again this morning, with the long-term uptrend beginning to come under some pressure.

The 7751 level is the most notable area of support, which would have to break for the price to begin looking more bearish. Until then, watch for a potential bounce to continue the recent uptrend.

FTSE 100 chart

DAX consolidates around trendline support

The DAX has been respecting an ascending trendline support over recent trading days, with this morning’s bounce reaching (and rejecting) the 13,296 intraday swing high.

The break above 13,296 (bullish), or below 13,166 (bearish), would provide us with the signal of where this market is moving next. Ultimately, even if we do break lower, this current pullback is seen as a retracement of the wider rally from 12,742.

DAX chart

Dow continues to outperform

The Dow Jones remains a more attractive proposition over its European counterparts, with the tax reform and weaker dollar impact helping drive further upside.

As we continue to push to new highs, watch for the continued creation of higher highs and lows. As such, a bullish short-term view remains, as long as the price is above 25,896.

Dow Jones chart

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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.