FTSE 100, DAX and Dow rise, yet profit-taking remains a concern

FTSE 100, DAX and Dow surge higher, yet there is a chance of profit-taking ahead of the US jobs report.

FTSE 100 trades back at key resistance

The FTSE 100 has continued its ascent, as risk-on sentiment helps drive global stock markets higher. For the FTSE that means a move back into the crucial 7636 resistance level, which will be the level to watch today.

Should we break through that level, it would point towards a move back into trendline resistance and the 7680 peak. However, the importance of this level means that we could see resistance hold out for now and a move lower for the FTSE.

DAX consolidating after recent breakout

The DAX has been treading water overnight, following on from a break through the crucial 13,472 resistance level. That leaves us within touching distance of the 13,601 record high.

The key to further gains is to remain above that 13,472 support level. Watch for whether we see a break below 80 on the stochastic as a possible sign that momentum could be reversing.

Dow Jones hits fresh highs following breakout

The Dow Jones has managed to break through the 28,958 resistance level, bringing about a fresh record high for the index.

We are starting to see some weakness come into play this morning, and there will be questions over whether we will see some profit-taking ahead of today’s US jobs report. Keep an eye out for whether we see a break below the previous resistance, with support now at 28,958. Should that break, we could see some short-term downside as traders exit their positions ahead of the event and weekend risk.

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