Levels to watch: FTSE 100, DAX and Dow
Stocks are on the rise, with the FTSE 100 breaking through key resistance. However, the DAX remains at risk following respect of Fibonacci resistance.
FTSE 100 breaks key resistance level to bring bullish signal
The FTSE 100 has managed to break through the 7196 level this week, negating the downtrend that has been in play since the peak of May 2018.
This points towards a wider recovery coming into play, with the recent uptrend expected to continue unless we see a break through the 7064 swing low. As such, further upside looks likely from here, with any short-term downside looking to provide us with a buying opportunity.
DAX turning lower from Fibonacci resistance
The DAX has been rallying sharply throughout the week, with the index reaching and respecting the 76.4% retracement level. Given the previous break below 11,006, it looks likely that we will see the market turn lower once again from here.
The ability to remain below the 76.4% retracement is going to be key, with a break below 11,122 providing confirmation of a looming downward move. Alternately, a break through 11,389 would signal a bullish break for the index.
Dow uptrend to persist yet rally slows overnight
The Dow Jones has managed to break into a new higher high this week, with the index looking likely to continue climbing from here.
Normally a rollover in the moving average convergence divergence (MACD) histogram signals a bearish phase coming into play, yet the fact that we have barely even mustered a retracement has to be seen as a bullish sign. A break below 24,884 would signal a more bearish picture coming into play, but until then, any downside looks like a buying opportunity.
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