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Levels to watch: FTSE, DAX and Dow

The bulls are back in charge, as the expected rally is finally coming to fruition across the board.

IG Analyst

Publication date : 2017-05-04T09:55:46+0100

German stock exchange

Source: Bloomberg

FTSE breaking into more bullish structure

The FTSE 100 has broken through 7265 this morning, heightening the chance that we have seen the end of the sell-off. With that move, we now have higher highs and higher lows on an intraday basis.

For greater confidence an hourly close above 7304 would point towards a push back into the all-time highs of 7448. For now, we are seeing tentative signs of that coming to fruition, and as such a bullish outlook is in play unless we break below 7220.

FTSE chart

FTSE chart

FTSE chart

DAX continues to push higher

The DAX has pushed onwards once more this morning, in what has been a very positive 24-hours for the index. Yesterday’s pullback provided us with a cheaper area to get in as expected.

However, we are now seeing the index surging higher in more of a breakout style rather than the gradual moves seen over the past week. As such, further gains seem likely from here, with no resistance up ahead. A break back below 12,476 would be required to negate this bullish view.

DAX chart

DAX chart

DAX chart

Dow begins bullish breakout

The Dow Jones finally has shown its true colours, with price rallying out of a descending channel and breaking through the 20,959 swing high. This gives me the confidence that we are set for a surge higher for the index. Of course we need to consider tomorrow’s jobs report as a driver of volatility. However, all things remaining equal, the chart looks primed for a strong surge higher and renewed uptrend.

With that in mind, further gains are expected from here. A break and hourly close back below 20,873 would be required to negate that view.

Dow Jones chart

Dow Jones chart

Dow Jones chart

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