Levels to watch: FTSE, DAX and Dow

Yesterday’s breakout puts the buyers back in charge, ending the long grind of the past couple of weeks.

US trader
Source: Bloomberg

FTSE 100 puts bulls in charge
The range that dominated for most of May has been broken, and in fine style. The close above 6200 hands the initiative back to the bulls, but with prices overbought intraday we could see some hesitation ahead of the US open.

However, it looks like the move higher has begun, so we look to 6350 and then 6430. A drop back below 6200 would offset some of the bullish outlook, but it looks like dips will be bought from this point onwards.

DAX on the rise
The index has smashed through resistance at 10,100, and for now is consolidating just below 10,200. Some profit taking may be seen, but so long as it holds above 10,040 then further gains should be on the way.

The next target would be the area above 10,400, the highs from late April. Bears will need to push the price back below 10,000 to reverse the current break higher.

Dow sees strong gains
Now back above the 50-day simple moving average, it looks like the buyers are in control. Again, gains have been strong, pushing the index into overbought territory intraday, but with the RSI on the daily chart trending higher, dips should be bought as and when they appear. If the low of 19 May marks the beginning of a new rising trend, then dips towards 17,600 should bring out fresh buyers. 

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