DAX turning lower after recent rebound
The DAX has been attempting to regain ground since Friday’s low, with the price heading lower from trendline resistance. We are now seeing a challenge of the ascending trendline, which caps the lower bounds of this recent symmetrical triangle formation.
A break below here would point towards another move lower, yet a break of the 11,929 level would take on even more bearish significance. Conversely, to the upside, we would need a break through 12,093 to bring about a more bullish picture.
Dow turning towards Fibonacci support once more
The Dow Jones remains within consolidation mode, rotating between the 26,073 mark and the 25,820 Fibonacci support. With the index having regained some ground overnight, it seems as if we are likely heading back towards that 61.8% level (25,820). This wider pullback seen over the past two weeks is likely to continue.
However, it is worthwhile being aware of that wider outlook, with the 61.8% (25,820) and 76.4% (25,739) levels likely to represent the bottom line of this pullback. As such, while we could see further short-term downside, it looks likely that we are in a retracement, which will soon resolve to the upside.