FTSE 100, DAX and Dow surge after Trump speech
FTSE 100, DAX and Dow break higher after yesterday’s appearance from Donald Trump. But will it last?
FTSE 100 rallies back towards resistance zone
The FTSE 100 has pushed higher after a conciliatory statement from US President Donald Trump yesterday, with risk-off sentiment easing to the benefit of global stocks. This has taken the index back into trendline and horizontal resistance, around 7600-7636.
For the FTSE, the recent weakness has occurred around a long-term trendline resistance, highlighting the potential for a significant period of weakness. However, with the price rising towards this short-term resistance area, traders should be watching out for whether we remain below 7636 to retain this potential bearish picture. If we do break through that resistance level, then the focus would be upon whether we can push through 7680 to negate that wider trendline and bring a bullish outlook for the index.
DAX breaks through key resistance
The DAX has surged higher off the back of this latest risk-on move, with the index reaching the highest level in almost two years. That places us within reach of record highs, with the bullish outlook that comes with such a breakout.
The key here is to watch whether we can sustain the price action above that 13,472 support level, with recent gyrations highlighting the threat of another leg lower.
Dow Jones surges back towards record highs
The Dow Jones has been on the rise after Trump's appearance, with the index just marginally off record highs.
That level is going to be key in the push for further gains, with a rise through 28,958 required to bring about a bullish continuation signal. To the downside, we would need to see a break below 28,731 to bring about a short-term retracement signal.
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