FTSE 100, DAX and Dow rally into key resistance
FTSE 100, DAX and Dow on the rise, as the markets reach key hurdles in their bid to break higher.
FTSE 100 rallies back into resistance zone
The FTSE 100 has managed to regain ground since Friday's losses, with the index rising back towards a zone of resistance. That 6300-6320 region has capped price action over the past week, bringing a consolidation phase after the mid-June surge seen from the 15 June lows.
With the stochastic oscillator tightening into a symmetrical triangle alongside this consolidation in the price action, we are awaiting the next breakout from this zone. With that in mind, the bullish continuation signal comes with a break through the 6320 peak from Friday. Until then, be aware that the current rally is at risk of another turn lower to continue this consolidation phase.
DAX rallies into key breakout level
The DAX has similarly rallied into key level this morning, with the rise into 12,485 bringing about a potential bullish breakout. Coming off the back of a recent period of consolidation, the gains we are seeing this morning highlight a potential next leg higher if this level can be overcome.
With the stochastic into overbought, there is a chance we could roll over from this level. Thus, it makes sense to look for a closed candle through 12,485 to bring about a bullish continuation signal from here.
Dow Jones pushes through Fibonacci resistance
The Dow Jones has also been on the rise this morning, despite sharp volatility overnight. The recent rise has taken us beyond the 76.4% Fibonacci retracement level at 26,222, with the price rising towards the upper echelons of a descending standard deviation channel.
Ultimately, we need to see the 26,448 level broken to bring about a fresh bullish continuation signal. Until then, we are at a key hurdle here that needs to be overcome if we are to see another bullish breakout phase.
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