Levels to watch: FTSE 100, DAX and Dow
Stocks are continuing to gain ground, with the FTSE 100 hoping to emulate the bullish break seen on the Dow yesterday.
FTSE 100 continues to grind higher towards key resistance level
The FTSE 100 has been slowly gaining ground as it tries to push back into the crucial 7196 resistance level.
That level is the peak from November 2018, with a break denoting a significant bullish shift in sentiment following an eight-month downtrend. As such, the ability to break through this level is going to be key in determining the outlook for the index.
DAX rallies into key resistance zone
The DAX has managed to push up into the area between the 61.8% and 76.4% Fibonacci retracements following a sharp period of downside last week.
That deterioration saw the price drop through the 11,004 and 11,047 support level, bringing a bearish outlook into play. As such, another turn downwards seems likely from here, with a break through 11,389 needed to negate that bearish outlook.
Dow rallies into new high
The Dow Jones managed to rally through 25,439 yesterday, bringing renewed confidence in the uptrend.
The price has engaged with a previous trendline in play in late January, so this is a minor hurdle that needs to be overcome. In any case, even if we did retrace from here, it would be a short-term pullback before we move higher once more. Thus, a bullish outlook is in play unless we break below 24,884.
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