Europe News

Charts Predict Upside Target of 11,600 for the Dow

Aside from the London stock market, indexes in the U.S., Europe and China should carry on upwards, according to Daryl Guppy, CEO of

The Shanghai Composite looks set to rise to 3,400 after a small correction, Guppy told CNBC Friday.

"We may expect to see a mild pullback developing. But it's very clear trending behavior towards 3,400 at the moment," he said.

The upside target is 11,600 for the Dow Jones Industrial Average, according to Guppy.

More Upside for Dow, Dax, Shanghai Composite

"What we really need to see is the market pull to 10,200 and to successfully break through that. A successful break above 10,200 gives us an upside target of 11,600," he said.

If Germany's DAX index breaks above a key resistance level of 5,700, it "clears the way for a very solid and stable move towards 6,500," Guppy predicted.

The FTSE-100 index is nearing the 5,300 level.

"What we're seeing is some consolidation resistance coming in at this level, so we expect to some movement between 5,100 and 5,300," he told CNBC. "A break above 5,300 sets an upside target of 6,100."