FTSE 100, DAX and Dow remain volatile ahead of busy week

FTSE 100, DAX and Dow continue to consolidate, with raft of economic releases bringing expectation of a forthcoming breakout.

FTSE 100 rallies towards resistance zone

The FTSE 100 has managed to regain ground from trendline and Fibonacci support (61.8%).

We have since managed to regain ground, with the index currently passing through the 76.4% resistance level. That points towards a likely rally into the 7600 level, to continue the trend of higher highs. This broadening formation is a difficult one to trade, and it is a case of looking for breakouts through notable levels to signal the end of the pattern. Such a breakout would come with a rise through 7621. Otherwise, this rally is likely to turn lower from the zone between the 7600-7621 region.

DAX gradually regaining ground after sharp decline

The DAX has been gaining ground after a sharp decline into the 76.4% Fibonacci support level.

There is a risk that this rally could falter given the slow ascent we are currently seeing. However, a significant bearish picture would require a break below 12,193, which would complete a head and shoulders formation. Otherwise, a bullish short-term bullish picture remains unless price falls below the 12,353 support level.

Dow consolidates after respect of key support

The Dow Jones rebounded from the key 27,068 support level on Thursday, with the price remaining within the same 27,068-27,402 consolidation zone that has been in play for over two weeks.

The breakout from this range will provide us with direction, yet for the short-term we are likely to see the index rise towards the upper end of this zone.

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