FTSE 100 and DAX show signs of a reversal while Dow consolidates
The FTSE 100 and DAX looks set for a bullish resurgence after tentative signs of a reversal. Meanwhile, the Dow is pausing in the wake of a rally into record highs.
FTSE 100 looks set for bullish phase
The FTSE 100 has been consolidating overnight, coming off the back of a crucial break through the 7544 swing high.
That new higher high points towards a likely resurgence coming into play before long. With price in a shallow retracement phase, a break through the 7549 would looks like a good buying opportunity. Only a break below the 7484 low would bring about a wider bearish picture once more.
DAX breaks key resistance to bring bullish outlook
The DAX managed to break through 12,888 swing high yesterday, bringing about a heightened chance that we are seeing the beginning of a short-term bullish reversal.
Coming off the back of a retracement into the 61.8%-76.4% retracement zone, this looks like a perfect time for the market to start turning higher once again. For the short term, we could see price drift lower, yet that would look like a buying opportunity unless we see a break below the 12,294 lows. Until then, it looks attractive to buy the DAX on a around the 12,328-12,347 zone, or on the rally through 12,424.
Dow consolidates after recent rally
Interestingly, the Dow Jones is showing a very different picture, with prior gains giving way to a phase of consolidation.
his could be the time where we see the index retrace some of those gains. However, we would need to see a break through the 27,291 swing low to bring about such a view. Until then, there is a good chance we will simply consolidate until enough energy is built up to embark on another leg higher.
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