FTSE 100, DAX and Dow uptrend looks set to continue

FTSE 100, DAX and Dow have been pushing higher, with European retracement likely to turn into further upside.

Dax Source: Bloomberg

FTSE 100 lags behind peers as strengthening pound

The FTSE 100 has been in consolidation mode for much of this week, with the index failing to follow other markets higher yesterday.

The prospect of lower rates in the eurozone and US are providing upside for the pound, yet this also provides a drag to international FTSE 100 stocks. The current phase of consolidation looks like a retracement of the 7315-7469 rally, and even if we saw the market drift lower over the coming days, such a move would look like a buying opportunity. Only a break below 7315 would negate the uptrend that has been in play since early June.

FTSE 100 chart Source: ProRealTime

FTSE 100 chart Source: ProRealTime

DAX consolidation likely to end in further upside

The DAX has enjoyed a week to remember, with the index continuing to move higher off the back of Tuesday’s gains.

We have seen some weakness overnight, yet this is likely to be a short-term phenomenon. A break below the 12,281 level would bring about a short-term bearish picture. Until then, another leg looks likely.

DAX chart Source: ProRealTime

DAX chart Source: ProRealTime

Dow drives higher, pushing through major resistance level

The Dow Jones has seen huge gains throughout the week, and things may not be over yet.

The recent upside has provided a break through 26,710 resistance, which represented a historical point which was respected in both the second quarter (Q2) 2019 and Q1 2018. With that break in mind, the final hurdle to overcome is the record high of 26,951. We have seen little selling, yet the end of the week can bring profit taking. Should that occur, its worthwhile noting that this bullish trend remains in play unless we break below 26,414.

Dow Jones chart Source: ProRealTime

Dow Jones chart Source: ProRealTime


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