Levels to watch: FTSE 100, DAX and Dow
Indices turn higher, with recent bearish signals being negated with a bullish shift overnight.
FTSE 100 rebounds after break below key support
The FTSE 100 failed to follow through on the break below 7064 yesterday, with the market gaining ground through the night. That points towards a potential period of upside coming into play.
The break through the top end of a falling wedge in the stochastic oscillator provided a signal that the market could start to see upward momentum before long. However, unless we see a break through the 7263 peak, any such upside is likely to be short term.
DAX manages to break through high to negate recent pullback
The DAX has enjoyed an outstanding overnight session, with the index breaking into a new three-month high.
The index is starting to show signs of hesitation, with the existence of trendline resistance coming into play. However, we would need to see a break below the 11,401 support level to bring about a more bearish wider outlook once more.
Dow showing tentative signs of bulls returning
The Dow Jones managed to break back into a notable area of resistance overnight, with the hourly chart highlighting the continued respect of the 26,037 resistance level.
This comes off the back of a failure to create a new lower low. Given the wider bullish trend, this could be the beginning of the next move higher for the index, with a break through 26,037 key to that. Alternately, a break below the 25,895 level would bring about a more bearish outlook for the index.
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