FTSE 100, DAX and Dow slide after break below key support levels
FTSE 100, DAX and Dow head lower following breaks below key support levels.
FTSE 100 drops into Fibonacci support
The FTSE 100 has seen sharp declines over the course of this week, with yesterday’s drop through the head and shoulders neckline at 6312 providing us with a swift slump back into Fibonacci support. That 76.4% Fibonacci level has provided support thus far, with the price holding up in early trade.
The uptrend does still remain in play on this four-hour chart, with the ability to remain above 6041 key to seeing the bullish trend persist. For today, we need to see whether this Fibonacci support holds or not, with a break below that 6153 level signalling a potential continuation of this decline, and move towards that critical 6041 level.
DAX slumps after trendline breakdown
The DAX has similarly broken lower, with the price completing a bearish head and shoulders formation yesterday.
The subsequent decline sees the index moving back towards the 61.8% Fibonacci level at 12,061. There is a good chance we will see further downside from here, with key attention paid to those Fibonacci support levels at 12,061 and 11,852.
Dow Jones heads lower after trendline break
The recent Dow rally is well and truly over, with the index breaking sharply lower for a third consecutive today. This marks the most severe decline in over a month. In time this is likely to bring a buying opportunity.
However, for now we could see further downside following a trendline break. A break back up through 20 on the stochastic could point towards a short-term rebound, yet further downside looks likely until that signal occurs. In terms of support, we remain some way from the 61.8% and 76.4% Fibonacci levels at 26,021 and 25,640.
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