FTSE 100 steady, while DAX looks strong and Dow pushes higher once more
Indices are beginning to stabilise, with the DAX in particular looking strong, while the Dow seems to have found a base around 26,800.
FTSE 100 hopes to maintain breakout
The last two sessions have seen the FTSE 100 unable to push on above 7430. Gains above this level have been impossible to sustain, raising the risk of a possible retracement back below 7360 and previous resistance.
However, rising trendline support could come into play around 7260. A push above 7440 would mark a new bullish development and push the index on towards 7480 and then 7556.
DAX returns to September highs
The DAX has shaken off its weakness from last week and pushed higher, and this morning has returned to the 12,500 area that marked the peak earlier in the month.
Above this 12,600 and 12,660 are near-term targets. A bearish view requires a move back below 12,400 and then a successful test of last week’s lows at 12,142.
Dow looks to break higher after consolidation
Price action appears to have formed a base around 26,800 for the Dow Jones, with dips below this over the past two weeks finding buyers.
If this marks the end of the correction phase then a move above 27,100 would begin to reinforce the bullish impression, targeting the record highs of the summer at 27,400 and potentially higher, as strong year-end seasonality kicks in. A failure to push on above 27,100 brings 26,800 back into play, but a more bearish view requires a drop through 26,700 that might signal a move towards 26,400 or lower.
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