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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.

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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.

FTSE 100 chart Source: ProRealTime
FTSE 100 chart Source: ProRealTime

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.

DAX chart Source: ProRealTime
DAX chart Source: ProRealTime

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.

Dow chart Source: ProRealTime
Dow chart Source: ProRealTime

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