FTSE 100, DAX and Dow turning lower, yet support remains key
FTSE 100, DAX and Dow drop off, yet we await key support to be broken to signal a new bearish picture.
FTSE 100 regaining ground after turn of new year
The FTSE 100 has been regaining ground since the lows seen on the final day of 2019. The fact that this turn occurred around the 76.4% Fibonacci retracement level could point towards another rally into the 7680 peak.
However, the wider picture has seen us respect a descending trendline, pointing towards a potential bearish phase coming into play. With that in mind, we would need to see a break above 7680 to bring about a renewed bullish outlook. Otherwise, a decline below 7525 and 7495 would bring about a bearish outlook, with the pair retracing the wider rally from 7132.
DAX breaking below key support
The DAX is continuing its decline, with sharp falls seen since Thursday’s peak looking likely to extend should we continue to break below 13,072.
This is a point where we see a potential turning point or breakthrough. Should the price sustain below 13,072, it looks likely we will see further declines coming into play. However, until that happens there is a chance that this support provides some upside.
Dow could turn higher after recent retracement
The Dow Jones has been similarly pulling back over recent trading days.
However, the uptrend evident throughout December remains in play, and thus it makes sense to look at this recent pullback in that context. A break below 28,367 would provide a more bearish outlook, yet until that happens there is a chance we could see the index turn higher from this area.
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