FTSE 100, DAX and Dow likely to turn lower from Fibonacci resistance

FTSE 100, DAX, and Dow have gained ground, yet with key swing highs yet to break, a bearish turn remains a distinct possibility.

FTSE 100 continues to rise following six-month low

The FTSE 100 continues to gain ground this morning, with the index passing through the 61.8% Fibonacci resistance level.

That prior break lower points towards a potential bearish reversal coming in the short term, with a break through 7304 required to negate that bearish outlook.

DAX pushing past Fibonacci resistance

The DAX is heading higher once again this morning, with the index rising through the 76.4% Fibonacci resistance level at 11,721.

Once again, we have a clear downtrend in play here, given the creation of lower highs and lows. That means we would need a break through 11,862 to bring about a more positive outlook. Until then, a bearish picture would come back into play if we see the stochastic break back below the 80 mark (without seeing a break through 11,862). That would provide us with a sign that momentum is on the turn despite the Fibonacci break.

Dow consolidates after recent rally

The Dow Jones has been on the rise of late, yet despite yesterday’s gains we have seen volatility disappear to bring a period of calm.

While we are seeing markets consolidate around the 76.4% Fibonacci, there is a chance we could see the index turn lower to continue the recent trend of lower lows. Ultimately, we need to see a break through the 26,426 resistance level to bring about a renewed bullish outlook.

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