Three Bullish Indices
Nevertheless, rises on the biggest global indexes is a fact. Gains are supported by the technical analysis too, which should give additional confidence.
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We start with the SP500, where buyers used a small pennant formation. Index broke the upper line of this pattern yesterday, which gave us a legitimate buy signal. Chances that we will see new long-term highs soon are pretty high.
Now DAX, which made a use of the flag formation, which we mentioned before in one of our analysis. Flag is a trend continuation pattern, so no surprise that it resulted with the breakout to the upside. Situation here is very similar to this one on the SP500, so bullish.
Last one is FTSE, where we also witnessed the bullish breakout from the flag formation. From the technical point of view, recent rise comes from the false breakout from the big head and shoulders pattern. The price did break the neckline but downswing stopped on the crucial horizontal support. Since that, the price is mostly climbing higher. June is definitely great for this British Index.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis