DAX, Nikkei 225 and Hang Seng make gains
Global indices are continuing to recover, though volumes are light thanks to the US holiday.
DAX pushes above 50-day moving average
Early trading has seen the price move above the 50-day simple moving average (SMA), continuing its recovery from the low of June.
Further gains target trendline resistance from the May high, while horizontal resistance around 18,65 may also come into play. From there the highs of May at 18,935 are the next target.
A close back below the 100-day SMA would negate this bullish view.
Nikkei 225 moves towards 41,000
The index has continued to make gains, rallying towards 41,000 just days after smashing through 40,000.
The long period of consolidation for the index, which dominated April, May and most of June, has given way to a strong rally. The March high at 41,15 is now is sight, and beyond this the index will hit a new record high.
In the short-term a close back below 40,000 might suggest that bullish momentum has been arrested for now, but the uptrend appears to be back in play over the medium term.
Hang Seng rebound continues
While the index has rallied over the past week, bouncing off the 100-day SMA, it is now yet clear that a new leg higher has begun.
We have seen two previous bounces since early June, both of which gave way to more losses. In the short-term, the price targets the mid-June high at 18,4, and then the 50-day SMA (currently 18,43).
Sellers will want to see a reversal back below 17,7 and the 100-day SMA.
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