FTSE 100, DAX and S&P 500 all rallying
Indices have had a good start to the week, moving higher as global data suggests a slowing of infection rates.
FTSE 100 bounces off 5400
Since 27 March, dips to 5400 have been met with buying pressure for the FTSE 100, and we saw this again on Friday. This area continues to hold as support, providing a base for the price to rally and push through trendline resistance from the 26 March high.
Further gains in the short term head towards 5700 and then 5830, and then to 5900. A more bearish view needs the price to break below 5400, which would bring 5000 back into play as a possible downside target.
DAX rallies off low of trading range
For the DAX, dips to 9400 have provided support, while it has been unable to move above 10,100. The bounce from the low of the range now needs to clear resistance at 10,100 to provide a clearer uptrend, or it will risk a drop back towards 9400.
Once 10,100 and 10,200 are cleared, 11,100 becomes the next major target to the upside. A deeper drawdown requires a move back below 9400.
S&P 500 lifted off Friday lows
Dips to 2450 continue to find buyers, as we saw on Friday, and while the S&P 500 has managed to bounce from this level, it has yet to retest the 2650 highs from late March.
A failure to push on above this level would create a lower high, but as noted this more bearish view would need a move back below 2450.
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