Stocks Could Now Rise 10%: Charts
A 10 percent rise for the FTSE-100 index and Dow Jones Industrial Average looks possible, according to technical charts, Chris Zwermann, global strategist at Zwermann Financial, told CNBC Wednesday.
Meanwhile, German Bund futures will drop and the euro has a chance to recover in the short term.
"Here is a good chance to buy the recovery," Zwerman said.
He has a target of 5,600 for the FTSE-100, but investors should sell out it if it dips below 4,900.
The Dow Jones Industrial Average "penetrated" the 9,800 "neckline" on Tuesday, but closed above that level which signals a "high possibility" that the U.S. index could trade higher, Zwermann said.
His target for the Dow is 10,730.68 in the coming weeks.
Zwermann also sees other markets, like Germany's DAX and Brazil's Bovespa, trading higher, in the short term.
After a steep rise, German Bund futures are on their way down, according to Zwermann.
"One reaction that might be possible in the short term 127.80," he said. "Again, going short at these levels and taking a stop when highs, say 129.80/90 or so which are historical figures, are taken out."
The euro/dollar has reached a 50 percent retracement at $1.2135, Zwermann told CNBC.
The euro is not really cheap, on the other hand, it's not really expensive. It's at a normal rate where it should be, he said.
He said he would buy the euro zone currency with a stop at close to $1.20 and that he sees a good chance of the euro recovering to $1.27-$1.30.
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