FTSE 100 on Track for Third Day of Gains
The FTSE 100 is set for its third consecutive day of gains, currently breaking through its May-to-July downtrend line at 8,259, with last week’s high at 8,287 as the next target. Further resistance can be seen at the 8,314 peak from late June.
Potential declines might find support around Thursday’s high of 8,234.
DAX 40 Advances Towards Key Resistance
The DAX 40 is advancing towards its May-to-July downtrend line at 18,628, with last week’s high at 18,665 as the next level to watch. Minor support is found between the July 1 high at 18,466 and the 55-day simple moving average (SMA) at 18,428.
Russell 2000 Rallies Over 3.5%
The Russell 2000 surged by over 3.5% after Thursday’s US softer-than-expected CPI data, indicating a rotation out of overvalued technology stocks into small caps. The index is approaching its June peak at 2,145, with levels not seen since January 2022, and the next target is the January 2022 peak at 2,291.
Potential pullbacks might find support around the 2,123 May high.
