FTSE 100, DAX and Dow rally towards key resistance
FTSE 100, DAX and Dow rebound into crucial resistance levels, with today's price action key to guiding forthcoming sentiment.
FTSE 100 rolls over from key resistance level
The FTSE 100 rally has taken us into the crucial 6262 resistance level overnight, with the index starting to weaken from that point. A break through that level would bring about a bullish signal, building on the recent creation of higher lows around the 61.8% Fibonacci zone.
Interestingly, the index has found support on the notable 6216 swing low level, where a break below that point would signal the potential for another period of downside. As such, the short-term direction will be guided by the ability to break either 6216 or 6262.
DAX eases back from notable resistance zone
The DAX has similarly started to weaken from a crucial area of resistance, with the 12,350-12,367 zone providing a potential bullish breakout area.
However, with the price turning back towards the 12,225 swing low, we will be looking for a break through either at 12,225 or 12,367 to providing the short-term outlook for this index.
Dow Jones turns lower as rally falls short
The Dow Jones has failed in its bid to recover back into the 25,802 resistance level. Ultimately, we need to see that level broken to bring about a bullish reversal signal after recent declines.
However, that bearish trend remains intact unless we see 25,802 broken. With the stochastic dropping below the 80 threshold and the price creating a short-term topping pattern upon breaking below 25,598, there is a chance we see further downside from here. A break through 25,802 would be required to negate this bearish trend.
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