FTSE 100, DAX and Dow rally through economic weakness
FTSE 100, DAX and Dow gain ground despite last week's poor data, with the short-term trends pointing towards further upside to come.
FTSE 100 continues to climb from Fibonacci support
The FTSE 100 bottomed out at the 76.4% Fibonacci level (5690) in early-May, with the index continuing to rise since then.
We have seen the index pullback into trendline support this morning, pointing towards the potential for another move higher from here. There are questions over the longevity of this rally, yet it makes sense to continue expecting upside unless we see the 5928 level broken.
DAX falls into trendline support
The DAX has similarly eased back into trendline support this morning, with the index trading within a rising channel over the past two trading days.
There is a good chance we turn higher once again from here in a bid to continue the recent uptrend. That bullish short-term view holds unless we break below the 10,817 level.
Dow Jones outperforms in a push towards the April peak
The Dow saw sharp gains on Friday, with initial signs pointing towards a similar move today. That initial upside overnight has eased back since, with the index seeing some downside from the 76.4% Fibonacci resistance level.
As such, there is the potential for further downside over the short term, with a rally through the 24,560 overnight peak required to continue the bullish push towards the 24,903 resistance level.
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