FTSE 100 and DAX break key resistance as market surge continues apace
The FTSE 100, DAX, and Dow are all showing signs of breaking higher following a brief period of weakness for stocks. With key resistance up ahead, the ability to break higher will be key for sentiment.
FTSE 100 fails to maintain bearish momentum
The FTSE 100 has been regaining ground after yesterday’s decline below 7359 support.
That break below the swing low signaled a potential turning point for stocks, yet the overnight failure to break below 7329 points towards potential trouble ahead for that bearish sentiment. As such, look out for whether we break through the 7374 swing high or not, to bring about a greater possibility of the bullish sentiment returning. However, we would ultimately need a break through 7421 to completely negate the bearish shift that occurred yesterday.
DAX consolidates above head and shoulders neckline
The DAX has looked likely to complete a head and shoulders formation this week, with a decline overnight bringing the price back into the 12,066 neckline.
However, with the price rebounding from that key level, we are now seeing the 12,136 resistance level being challenged. The ability or inability to break through this level will be key for todays outlook, with a rally through this level pointing towards a potential recovery or retracement of the wider decline from 12,225. Only a break through that 12,225 level would bring about a bullish continuation signal.
Dow threatens to break higher from retracement phase
The Dow Jones has been drifting lower over the course of this week thus far, with the index creating lower highs and lower lows since Tuesday’s peak.
However, with the price rising into the latest swing high of 26,062, there is a chance we are about to break higher from this retracement phase. Today is going to be driven by whether we see a break through the 26,062 level or not. That will guide whether we look at this market in a bullish or bearish sense over the short term.
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