FTSE 100, DAX and Dow run into key resistance after overnight gains

FTSE 100, DAX and Dow gain ground overnight, yet bearish intraday patterns point towards a possible bearish turn coming into play.

FTSE 100 rallies into trendline resistance

The FTSE 100 has been gaining ground overnight, with the index pushing back into trendline resistance.

The recent existence of lower highs has been highlighted by this trendline, and the continuation of that bearish pattern is thus coming into question this morning. As such, there is a good chance we will reverse lower once again from here, with a break through 7197 required to bring about a more bullish mentality.

DAX upside could be capped at SMA resistance

The DAX has similarly managed to rebound into a notable area of resistance, with the 200-hour simple moving average (SMA) bringing about a possibility that we could start to see the index turn lower once again.

The recent trend of lower highs and higher lows signifies a general lack of direction, with a break through either 11,984 or 12,179 required to bring a more convincing directional bias. Until then, there is a good chance we will turn lower to continue this consolidation phase.

Dow expected to turn lower despite overnight gains

The Dow Jones has also been gaining ground overnight, with the index rallying back towards the highs seen throughout much of yesterday.

Once again, that is bringing us into a trendline resistance zone, where the expectation of continued lower highs comes into question. A break through trendline and 26,441 resistance would bring about a more bullish outlook. However, until then it makes sense to look for a bearish reversal from here to continue the downtrend seen through this week.

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