FTSE 100, DAX and Dow continue to push higher
FTSE 100, DAX and Dow push higher, with US markets reaching record highs.
FTSE 100 rallies through key resistance zone
The FTSE 100 has managed to rise through the 76.4% resistance zone, which has capped much of the price action seen over the past two weeks. That rise takes us closer to the key breakout level of 7441, which would bring a wider bullish outlook if broken.
For now, we are seeing the price pull back, with the price having dropped towards the 7359 level. Should that short-term swing low break, it would point towards further downside as we retrace the rally from 7240. Until that happens, further upside seems likely.
DAX rally pauses after rally into historical resistance
The DAX has been on the rise once again, with the price hitting a 16-month high this week. We are starting to see the price consolidate after rising towards the notable 13,208 resistance level (May 2018 peak).
There is a chance we could see further downside for the near term, yet such weakness would likely be fleeting unless we see a break below 12,792. For the short term, a break below 13,116 would raise the likelihood of a short-term retracement. Until then, the bullish outlook remains in play.
Dow continues to gain ground after hitting record high
The Dow Jones has managed to break into a record high this week, with the price breaking through 27,315 and 27,403 resistance. The lack of resistance above the current price points towards further upside, with traders likely to follow the short-term trend for now.
The hourly chart highlights the continued creation of higher highs and lows. A break below the most recent swing low of 27,403 would point towards a retracement of the wider rally from 26,914. Thankfully that swing low also represents the prior record high, thus adding greater value to 27,403 as support in any short-term pullback.
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