FTSE 100 and DAX hit trendline resistance
FTSE 100 and DAX start to ease back after a rally into trendline resistance.
FTSE 100 consolidates after Friday’s surge
The FTSE 100 pushed into the key 7680 resistance level on Friday, signalling a potential wider breakout coming to play after a recent period of consolidation. This 7680 level of resistance is also joined by a wider descending trendline, and thus there are significant wider bullish consequences to a possible break higher from here.
We are seeing some weakness this morning, which highlights the possibility of a short-term pullback from this area of resistance. However, that would be deemed a short-term move unless we see a break below 7594. Given the existence of this long-term trendline, it makes sense to await a break through 7730 to really take on a more confidence bullish view for this index.
DAX turning lower from trendline resistance
The DAX has similarly surged into trendline resistance, pointing towards a possible pullback in the short term. Much like the FTSE, we would need to see a break below the 13,380 level to provide greater confidence of a more protracted pullback.
To the upside, we would need to see a break through trendline and 13,601 (all-time highs) to bring a more confident bullish outlook.
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