FTSE 100, DAX and Dow surge higher after recent declines
FTSE 100, DAX and Dow surge higher, with recent coronavirus fears taking a back seat.
FTSE 100 breaks through crucial resistance level
The FTSE 100 has been surging higher as part of a wider risk-on move throughout financial markets.
The break through 7516 provides us with a wider bullish outlook, with the price looking likely to rise back towards the descending trendline that forms the top of a wider symmetrical triangle formation. With that in mind, further upside looks likely, with any short-term weakness requiring a break below 7397 to bring expectation that it is anything other than a short-term retracement.
DAX turning lower from key resistance
The DAX has seen an almighty rebound following a decline into Friday's low of 12,884. This rally has taken us back into the 13,601 resistance level which encompasses both the January 2018 peak and the highs seen a fortnight ago.
With that in mind, we could see some weakness come into play from here as we give back some of the recent gains. To the upside, a mixture of ascending trendline and 13,640 resistance is likely to cap any further strength for now. A break through that resistance zone would be needed to continue this bullish push.
Dow Jones rallies into fresh highs
The Dow Jones has punched into fresh highs after rising through the 29,402 resistance level.
The ability to remain above that level will be important today, for any declines have provided precious few notable swing lows to focus on. Further upside does look likely before long, yet a break below 29,402 would point towards short-term weakness coming into play.
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