FTSE 100, DAX and Dow likely to gain ground once again

FTSE 100, DAX, and Dow look primed for further upside after overnight pullbacks.

DAX Source: Bloomberg

FTSE 100 rising after overnight retracement

The FTSE 100 pulled back into a deep retracement after yesterday's rally, with the price falling towards the 76.4% Fibonacci support level.

We may not have touched that level, but the prior rally through 7350 points towards that recent move lower as being a retracement before we push higher. That is starting to play out this morning, and thus it makes sense to look for further upside as we close out the week. A break below 7287 would be required to negate this bullish outlook.

FTSE 100 chart Source: ProRealTime

FTSE 100 chart Source: ProRealTime

DAX continues to grind higher

The DAX continues to push higher following the recent decline into 12,305 support.

Trendline support appears to be providing a nice predictable trajectory in this rally. There is a good chance we will continue to move higher given the respect of that trendline. A break below trendline support starts pointing towards a continuation of the consolidation seen over the past week. Until then, watch for further upside as we move towards the key resistance level of 12,496.

DAX chart Source: ProRealTime

DAX chart Source: ProRealTime

Dow turning higher after recent pullback

The Dow Jones is looking similar to the FTSE 100, with a deep retracement coming marginally above the 76.4% Fibonacci level.

We are now seeing the price turn higher, as it looks like we are going to continue the uptrend seen over the past month. With the price having reversed last week’s pullback, we expect to see further higher highs and lows where a break below 26,990 would be required to negate this bullish short-term bias.

Dow Jones chart Source: ProRealTime

Dow Jones chart Source: ProRealTime


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