FTSE 100, DAX and Dow turning higher once more
FTSE 100, DAX and Dow start to regain ground after a brief period of downside.
FTSE 100 falls back towards key support
The FTSE 100 failed to maintain its initial gains yesterday, with the index faltering at the 61.8% Fibonacci resistance level.
While the price started turning back towards that initial low of 5895 overnight, we are seeing some stability come into play as the European markets open. The recent uptrend does remain intact, and it makes sense to expect further upside unless we see the price break below 5895 support.
DAX starts to stabilise after recent pullback
The DAX has also started to consolidate after yesterday's declines, with the price failing to break below yesterday's low of 10,739 despite overnight losses.
With the index starting to build some momentum, a rise through the 10,903 level would bring greater confidence that we will see a continuation of the gains seen in early May.
Dow Jones wedge points towards further upside
The Dow losses seen overnight look to have formed a falling wedge pattern, with the price starting to rebuild momentum as the stochastic declines into oversold territory.
Despite ongoing worries that the reopening of economies will ultimately prove how restricted we will be by this virus, we are yet to see the sentiment really take a bearish shift. With that in mind, further upside looks likely for now, where a break through the 24,366 level brings about greater confidence of a bullish move.
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