FTSE 100, DAX and Dow continue to regain ground
FTSE 100, DAX and Dow push higher, with the Dow leading the way after breaking into a four-week high.
FTSE 100 pushes higher after respecting critical support
The FTSE 100 failed to break the 5574 support level yesterday, with the index rallying since. That level would have seen a bearish head and shoulders pattern formed, yet we are instead faced with the possibility of a bullish continuation move as the index heads towards a key area of resistance.
That resistance is worth considering as we push higher, with the descending trendline, alongside horizontal resistance at 5782 and 5828 providing key hurdles to overcome if we are to finally break from this period of consolidation. Until they are broken, there is always a risk that the bears will soon come back into play to maintain price within this two-week range.
DAX pushes back towards key resistance
The DAX similarly failed to break a key support level yesterday, with the index turning higher rather than break below the 10,098 support level. The subsequent gains have taken us closer towards the 10,592 resistance level, which would create a four-week high if broken.
Such a breakout would also provide us with a clue that the uptrend is set to continue despite the index having already recovered 43% of its declines. From a wider perspective, these gains seem unsustainable, with a wider bearish view expected to come back into play at some point. The question is when, and we have not seen such bearish signals come into play yet.
Dow breaks into fresh four-week high
The Dow Jones has managed to break through the 23,596 resistance level this morning, thus forming a fresh four-week high.
This breakout points towards a high likeliness of further upside to come, with the most recent swing low of 23,281 needing to break for us to start bringing about a bearish short-term outlook.
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