FTSE 100, DAX and Dow at risk of another move lower

FTSE 100, DAX and Dow are at risk of further losses, as recoveries fail to gain enough traction.

FTSE 100 looks at risk of another move lower

The FTSE 100 has been gaining ground at the beginning of the week, with the index attempting to push out of an intraday downtrend that was in play the week prior.

That trend of lower highs and lower lows comes into question given the recent respect of the 76.4% support level at 7145. A break through 7198 would bring about a more bullish outlook, yet the fading momentum on this rally does raise the possibility of another leg lower to continue this bearish trend.

DAX rallies towards key bullish breakout level

The DAX has managed to rally away from the crucial 12,599 support level, where a break below that point would have provided us with a bearish head and shoulders formation.

With that now seemingly off the card, we have seen the price move into the 12,818 resistance level. A break above that level would bring about a bullish continuation signal. As such, watch out for whether we can see a break through 12,818 as sign that the recent uptrend is set to continue.

Dow at risk of another leg lower

The Dow Jones has been tentatively regaining ground following Friday’s declines, with the index rallying through the 26,875 level yesterday.

However, despite that break there is a strong chance that we are setting ourselves up for another bearish phase given the lack of conviction evident within this recovery. The shallow slant of this rally could signal that this is simply a pause before the bears come back into play once more. For confirmation of this, watch for a break below 26,742.

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