FTSE 100, DAX and Dow gains bring potential bullish phase
FTSE 100, DAX and Dow gains point towards a potential impending period of upside for stocks.
FTSE 100 gains bring resistance level back into focus
The FTSE 100 has turned higher once again following a sharp pullback into the 200 simple moving average (SMA) support yesterday (four-hour). With the price heading towards the 6324 level, there is still a chance we will see the index continue its consolidation phase unless we see that resistance level broken.
As such, a break through 6324 is required to bring about a fresh bullish outlook. Until then, there is still a possibility we will see the index consolidate within 6227 and 6324 as we await the breakout.
DAX surges higher overnight amid EU stimulus deal
An apparent breakthrough on the EU stimulus package has helped drive the DAX into a fresh five-month high.
With the index having broken through the key 12,938 resistance level last week, there is a good chance we will see further gains as long as the EU package doesn’t falter. The four-hour chart highlights this recent leg higher, with a bullish outlook in play unless we see a break back below the 12,807 level.
Dow Jones rise brings about fresh bullish signal
The Dow has broken through 26,837 following a decline into the 61.8% Fibonacci support level last week.
The subsequent rally through that initial swing high resistance point brings a fresh bullish signal within a wider upward trend that has been playing out over the past month. As such, further upside does look likely from here, with a break below the 25,997 level required to negate this positive bias.
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