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Levels to watch: FTSE 100, DAX and Dow

The Dow is starting to come back, with recent bullish reversal signals pointing towards a possible resurgence. Meanwhile, in Europe, the FTSE 100 continues to climb and the DAX asks questions amid a break below trendline support.

IG Analyst

Publication date : 2018-05-22T09:39:29+0100

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FTSE 100 heading to new highs once more

The FTSE 100 is heading higher once again this morning, following on from last night’s gradual pullback.

The recent uptrend is very clearly defined, and as such, further upside looks likely from here. As long as the price remains above the 7747 mark, a bullish outlook remains in play, with further gains likely from here.

FTSE 100 price chart

FTSE 100 price chart

FTSE 100 price chart

DAX early gains fading at the open

The DAX is selling off sharply in early trade, with the index coming under pressure after recent upside. The current break below an ascending trendline support highlights the possibility of a bearish short-term shift.

However, the key is whether we see the price break below the near-term swing low of 13,050 support. Should we see an hourly close below that, there is a chance we will see a more bearish phase play out. Until then, the uptrend does still remain intact, albeit with a break below trendline support. As such, a bullish outlook remains in place unless we break below 13,050.

DAX price chart

DAX price chart

DAX price chart

Dow hits two-month high

Yesterday saw the Dow Jones manage to break through the high from last week, with the news of easing tensions between the US and China helping aid a more bullish outlook.

That looks likely to continue now that we have seemingly ended the retracement period evident in the wake of the break above 24,860. With the wider outlook providing a bullish signal that we have seen the index bottom out, there is a strong likeliness that we are going to see further gains come into play from here. As long as we keep above 24,628, a bullish outlook remains.

Dow Jones price chart

Dow Jones price chart

Dow Jones price chart

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