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.

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.

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.

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.

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