FTSE 100, DAX and Dow rally into key resistance
FTSE 100, DAX and Dow rally towards key resistance following recent declines.
FTSE 100 rising into key resistance
The FTSE 100 has been staying afloat this week, with the index regaining ground after declining towards a critical level of support on Tuesday (7132).
We have since started to move back towards the 7259 resistance level, with today’s outlook largely dominated by the ability or inability to break through this level. Should that breakout occur, we would be looking at a likely rise into the 7325 Fibonacci level over the near term. However, should we fail to break 7259, then we are likely to continue this current consolidation phase for a move back down towards 7132.
DAX rebounds back into crucial resistance level
The DAX has managed to rebound sharply since the Tuesday lows of 12,884, with the index now trading marginally below the 13,185 peak established on Monday.
A break through that resistance level would bring about a more bullish theme, negating the creation of lower highs that have been in play over the past month. Thus, watch for whether we see 13,185 broken as a precursor to further upside.
Dow Jones consolidating after recent gains
The Dow Jones has failed to maintain the bullish momentum of last week, with the index largely trading lower since Monday’s peak of 28,036. Perhaps this is merely a pause before we mount another charge towards 28,201.
However, with the index having turned lower from around the 76.4% Fibonacci retracement level, it is worthwhile noting the possibility of a bearish turn from here. As such, watch for a break through either 28,036 (bullish), or 27,796 (bearish) to provide greater clarity on the short-term outlook for the Dow.
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