FTSE 100, DAX and Dow all on the up

Indices continue to be buoyed by hopes that trade wars are beginning to cool, but there is still work to be done to indicate more gains are on the way.

FTSE 100 on a high after week-long rally

The FTSE 100 has rallied throughout the week, but now faces the crucial test: can it push on through recent resistance?

This is to be found first around 7215, the highs from last week, while above this the 7300 area from early August comes into play. Clearance of these levels would provide a much more bullish view. This may not be accomplished quickly, and drops towards 7140 may find rising trendline support from the 26 August low.

DAX returns to critical level

For the DAX, the crucial test has already arrived. It has rallied to the 11,850 zone that held back progress throughout August, and in early trading it is already putting on solid gains. A daily close above 11,850 clears the path to further upside, with 12,400 and 12,600 the next areas to watch.

Higher lows have been seen since Monday, so a push below 11,550 would be needed to negate the bullish view.

Dow pushes above 100-day moving average

The Dow Jones has opened above the 100-day simple moving average (SMA) for the first time since 2 August, and looks set to push higher.

Rising trendline support from Monday’s lows comes in around 26,000 so we could see this tested in due course, especially given the level of volatility seen this month. Further gains target 26,780 and then 27,420.

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