FTSE 100, DAX and Dow reverse lower after recent gains

FTSE 100, DAX and Dow turn lower, as recent gains fail to drive bullish breakouts.

FTSE 100 remains below crucial resistance level

The FTSE 100 has been pushing higher over the past week, as it closes in on the crucial 6321 resistance level. That threshold remains a key hurdle that the index must overcome if it is to break from this recent consolidation phase playing out since early-June.

With the index turning lower this morning, there is a chance of us failing to break this resistance level up ahead, yet we would need to see 6225 broken to bring a more bearish outlook for the short term. Thus sentiment is dictated by the ability to break either 6321 or 6225.

DAX turns lower after recent ascent

The DAX has failed in its bid to overcome the 13,003 resistance level, with the index turning lower this morning. A break below the 12,804 support level would bring about a potential wider retracement of the 12,400-13,003 rally.

However, with trendline and horizontal support down below, the short-term sentiment is going to be dictated by the ability to remain above that kay confluence of support.

Dow Jones declines into Fibonacci support

The Dow has been underperforming European equities over the final days of last week, with the continuation of that decline bringing about a move into 61.8% Fibonacci support at 26,446. While those losses are continuing, there is a good chance we are looking at a retracement which provides a precursor to another leg higher.

The oversold stochastic could highlight a potential bullish reversal coming into play before long, yet we need to see these Fibonacci levels respected. For now we are looking at 26,445 and 26,272 to potential bring about a reversal of fortunes. However, a break below the 25,992 level would bring the wider Fibonacci into play (from 25,417).


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