FTSE 100, DAX and Dow likely to turn lower once again
FTSE 100, DAX and Dow weakness looks likely to return despite overnight gains.
FTSE 100 breaks lower from rising wedge formation
The FTSE 100 slumped lower yesterday, with the index falling sharply from a rising wedge formation.
This is in line with the wider bearish trend in play since late July. We have seen the price attempt to regain ground overnight, yet that is likely to be a fleeting move. A failure to break through 7183 would be key to signaling further downside. As such, a bearish turn looks likely following this rally into Fibonacci resistance, with a break through 7183 required to start bringing a more bullish short-term picture to the fore.
DAX consolidates after yesterday’s sharp move lower
The DAX saw similar declines yesterday morning, with the price breaking below the 12,072 and 11,968 swing lows.
That points towards the possibility of further downside to come. With the price consolidating, watch for a break below 11,957 as a bearish sell signal from here. Conversely, a rise through 12,034 points towards further short-term gains.
Dow declines after head and shoulders completion
The Dow Jones completed a head and shoulders formation yesterday, with the break below 26,422 paving the way for further downside.
That bearish signal remains relevant, with overnight gains looking likely to be sold into. As such, further downside looks likely from here, with a break through 26,421 required to start bringing about a more bullish outlook for the pair.
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