FTSE 100, DAX and S&P 500 all still rallying
Indices have opened the week with more gains, as the US-China trade war moves towards a partial resolution.
No stopping the FTSE 100
The rally continues, as the FTSE 100 heads back to the 7440 resistance zone of the past few months. We are already seeing gains in early trading, as bulls drive the price higher.
A daily close above 7440 is still needed to open the way to a more bullish view, with 7555 and then 7640 coming into play following a break higher. As before, a failure to break 7440 suggests a retracement towards 7200 and the lower end of the recent range.
DAX builds on Friday’s gains
The DAX dropped back from Friday’s high, but already buyers are returning to revive the rally. Further gains target 13,450, and then on to 13,600.
Last week’s bounce off the 50-day simple moving average (SMA) at 12,990 provided a firm foundation for gains, and since then short-term trendline support has seen higher lows develop – a pullback towards 13,300 might hold, or alternately 13,250 and then 13,100 come into play.
S&P 500 back to new highs
Phase one of the trade deal is all but done, and the rally goes on. The S&P 500 has shrugged off Friday’s late decline, and has now set its sights on clearing 3185 and a return to new all-time high territory.
3160 and then 3135 are possible areas of support, while a deeper retracement towards 3130 would encounter possible trendline support.
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