Levels to watch: FTSE, DAX and Dow

Indices turn lower, in a continuation of recent weakness. With many of these moves originating from major key resistance levels, we could have further to run yet.

Trader in front of data screens
Source: Bloomberg

FTSE sell-off looks set to continue

The FTSE 100 managed to rally into the 61.8% Fibonacci resistance level yesterday, before turning sharply lower in what looks like a continuation of the downtrend we have seen over the past fortnight. The bearish outlook remains, with price expected to fall back below 6910 to create a new low.

Should that occur, then the line in the sand for this downtrend to remain intact would shift to yesterday’s high of 7011. Until then, a bearish outlook remains in play unless we move back above 7068.

FTSE 100 price chart

DAX breaking through key support level

The DAX is also breaking lower in a meaningful way, with price falling below the key 10,628 support level.

Given this reversal has taken place from the key 10,807 resistance level, we could see this sell-off extend for some time yet. As such, a bearish view remains unless price break back above 10,780.

DAX price chart

Dow turns downwards towards support zone

The Dow Jones is heading lower following a rally into the 18,264 peak from 14 October. We remain within a range and that calls for a move back into the 18,045–18,060 area.

A break and closed candle below there would point towards a move back to 17,956, yet for now a bearish outlook remains in place for a move back into 18,060, where questions will be asked. This bearish view would be negated with an hourly close above 18,280. 

Dow Jones price chart

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