FTSE 100, DAX and Dow consolidate within wider uptrend
FTSE 100, DAX and Dow retain their uptrends despite recent signs of a potential bearish picture emerging.
FTSE 100 continues to consolidate after recent declines
The FTSE 100 has been pulling back since the Tuesday peak, when the index hit the 76.4% Fibonacci resistance level. The recent deep retracement towards the 7240 level signals a potential bearish picture coming into play.
However, we would need to see a break below 7257 and 7240 to bring about a wider bearish picture. Alternately, a break up through the prior peak and Fibonacci resistance around 7391 would start to bring about a more bullish outlook.
DAX continues to consolidate after trendline break
The DAX has been showing signs of a potential bearish turn of late, with the price breaking below an ascending trendline and falling back into the 13,142 support level. We have since seen a rise back into trendline resistance, with the index turning lower since.
The key here is which direction we break from this consolidation zone. A decline below 13,142 would bring a bearish phase into play, whereas a rise through 13,303 would bring about a bullish continuation signal.
Dow tentatively breaks into new high
Dow Jones has managed to head into a new record high overnight, with the index rising through the 27,775 high. Coming off the back of a consolidation phase, the failure to break below the 27,501 support level highlighted the continuation of the recent uptrend.
A break below that support level would point towards a possible bearish reversal. However, until that happens, there is a high likelihood of another leg higher for the Dow.
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