FTSE 100, DAX and Dow take breather after recent gains
FTSE 100, DAX and Dow ease back somewhat, yet US markets look set to outperform after US-China trade deal.
FTSE 100 pulls back to trendline support amid recent gains
The FTSE 100 has been grinding higher over the course of the week, with the index gradually moving back towards the 7653 resistance level. However, with the index now challenging an intraday ascending trendline, we could see the index come off somewhat if this line does not hold.
As such, watch out for whether we break through this trendline support or rebound, with a decline below 7609 required to bring about a more bearish signal. To the upside, we need to see 7653 and 7730 broken to bring about a wider bullish outlook.
DAX starts to show signs of potential resurgence
The DAX has been drifting lower over the course of the week, with the index giving back some of the gains seen last Wednesday. However, this is likely to be a short-term phenomenon which ultimately resolves with a move higher for the index.
This hourly chart does highlight the break through trendline and horizontal resistance (13,461) which could pave the way for a resurgence today. As such, a bullish outlook is in play, with a decline back below 13,361 required to negate this view.
Dow Jones outperforms after US-China trade deal
The Dow Jones is outperforming in the wake of yesterday’s trade deal, with the index hitting fresh highs above 29,057.
We are seeing little volatility in early trade, yet it is likely that we will continue to gain ground going forward. As such, further gains look likely, with a break below 28,883 required to negate this bullish outlook.
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