FTSE 100, DAX and Dow ease back, yet bullish trends remain
FTSE 100, DAX and Dow upside begins to slow, yet any downside is likely to be brief.
FTSE 100 looks set for further upside
The FTSE 100 has managed to push into a new four-month high off the back of both election and US-China trade optimism, with the index reaching this high yesterday.
We have seen the index consolidate overnight, yet it is likely that this sideways price action is a precursor to further gains. Watch for a break through yesterday's peak and the 76.4% Fibonacci resistance at 7557 to provide a renewed bullish signal for the index.
DAX continues to stutter after bullish breakout
The DAX broke into an impressive 22-month high with the rise through 13,375 on Friday.
However, the index has been consolidating since that break, with gradual gains seeing us grind back towards Friday’s peak of 13,458. A break through the previous high could be the signal needed to bring about a new bullish surge. Alternatively, a decline below 13,253 would signal a likely period of retracement for the index.
Dow easing back after recent breakout
The Dow Jones managed to break into a record high yesterday, yet we have seen the index pull back somewhat since. With the price falling back again currently, there is a chance we will see further downside for the short term.
A break below 28,188 would signal such a move. Should that occur, watch for a potential retracement of the 28,023 rally to come into play. However, the bullish uptrend remains intact until such a break occurs, with a decline below 28,023 required to negate this recent bullish theme.
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