FTSE 100, DAX and Dow consolidate, with next leg higher likely
FTSE 100, DAX and Dow have all been drifting lower, yet with key support yet to be broken, another move higher is a distinct possibility.
FTSE 100 rises through key intraday resistance
The FTSE 100 provided a welcome boost yesterday afternoon, with the index rising through the notable 7374 resistance level to provide a telling new high.
The recent period of weakness has been somewhat unimpressive, with the index slowly losing ground in the wake of an initial period of growth in early June. This gradual decline highlights a strong possibility that this is a temporary breather before we move higher once again. With the price having pushed through that 7374 level, there is a good chance we are now seeing the start of that bullish phase come into play. Watch for further upside in the near future. A break below 7324 would be required to negate this bullish outlook.
DAX continues to consolidate above key support zone
The DAX has been in consolidation mode of late, with the index trading above a crucial area of support.
With the index heading lower this morning, a break below that 12,052-12,063 zone would be required to bring about a bearish sell signal for the index. Conversely, should such a move fail to materialise, a break through 12,140 would provide a more bullish view.
Dow awaiting the next leg higher in gradual ascent
The Dow Jones is trading within a very slow and conservative uptrend of late, with the gradual stepped creation of higher lows continuing over recent days.
The index is currently drifting lower, in a continuation of the move seen since yesterday’s high. As such, the bulls are expected to come in once again, with that bullish outlook only negated in the event that the price declines below 25,987.
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