DAX rallies into Fibonacci resistance
The DAX has managed to rally into the 61.8% Fibonacci resistance level, following on from a drop into the 12,102 support level. That inability to break into a new low doesn’t give us a particularly strong signal in either direction.
Thus, the ability to break above the 61.8% and 76.4% Fibonacci levels will tell us a lot about whether we can continue this current rally or not. Should we see the DAX respond to those levels, then that would be a signal that we are possibly seeing a retracement before we sell-off once more.
Dow pushes higher thanks to Mexico deal
News of a trade deal between the US and Mexico has seen the Dow Jones break into a six-month high. We are likely to see further upside, with a push into record highs expected in the near future.
However, we are also likely to see a retracement before long, so it looks sensible to buy into retracements or continuation pattern breakouts, with a move below 25,606 required to negate this current uptrend.