FTSE 100, DAX and Dow head lower once again
FTSE 100, DAX and Dow back into bearish territory, following breaks below key support levels.
FTSE 100 consolidates after yesterdays decline
The FTSE 100 has started to show signs of a potential bearish reversal, following on from a period of gains throughout much of last week. The wider picture is increasingly bearish, following on from the drop into 7078 support last Monday.
With the price having dropped below the 7236 support level yesterday, it looks like the recovery could be over already. With the price consolidating, we are looking for a break below the 7206 support level to bring further declines into play here.
DAX sell-off expected to gather pace
The DAX has similarly turned lower, with the break below 11,748 paving the way for a bearish decline.
We have seen that bearish picture develop since then, and with prices forming continued lower highs and lower lows, it looks like we could see further selling come into play. A break below 11,616 would bring a continuation of this bearish trend, while a rise through the 11,728 swing high would be required to bring about a more bullish picture.
Dow declines as it unravels recent rebound
The Dow Jones has also turned lower this week, with the decline below 26,097 bringing about a more bearish picture for the index.
We have seen a moderate rebound overnight, yet that looks like a short-term phenomenon given the subsequent decline back into the 25,820 level. That shallow retracement seen overnight points towards a lack of bullish sentiment. Thus, further losses look likely in the event that we break below 25,820, while a rise through 26,417 would be required to negate this bearish picture.
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