FTSE 100, DAX and Dow surge ahead of lockdown easing

FTSE 100, DAX and Dow surge in anticipation of lockdown easing measures globally.

FTSE 100 surges towards key resistance level

The FTSE 100 has been on the rise since Friday's lows, with yesterday's closure for UK and US markets leaving much of the price action to mainland Europe and Asia. Ultimately, we are seeing a bullish surge take hold as traders prepare for a host of reopening measures throughout the world.

The success of those measures may not be known for some weeks, thus allowing for a more optimistic outlook for now. For the FTSE 100, the rally takes us closer to the crucial 6211 breakout level, which is the highest point reached within this recovery. With that in mind, we need to see a break through that level to really point towards a breakout and continuation. Until then, a break below the 80 mark on the stochastic could provide a more bearish short-term view.

DAX breaks resistance as bulls get in the hot seat

The DAX has reached the highest level since early March. The break through 11,342 brings a breakout from the consolidation mode seen since the beginning of April.

It is difficult to know exactly where this rally ends, yet we do have to keep an eye out for the 61.8% Fibonacci resistance level at 11,592. For the bears, it is worthwhile watching to see if we get a bearish break below the 80 level on the stochastic oscillator.

Dow Jones surges through resistance to bring multi-month high

The Dow Jones has broken through the 24,836-24,903 resistance zone this morning, with the index hitting levels not seen since early March. That breakout could bring further upside for the near term, yet the resistance point of note comes at the 61.8% retracement level of 25,229.

Once again, a more bearish picture comes into play from a momentum perspective if the stochastic drops below the 80 threshold. Nevertheless, we would ultimately need to see a decline through the 24,158 level to bring about a more consistent bearish view once more.


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