FTSE 100, DAX and Dow sell-off begins to ease
FTSE 100, DAX and Dow has started to regain ground, following a week of incredible losses
FTSE 100 rebounds from historical low
The FTSE 100 has managed to bounce from the crucial 7078 support level this morning, following on from an incredible week of downside which culminated in a huge move lower after the close yesterday.
However, with price respecting the June low of 7079, it looks like we could be set for a bullish rebound if only to retrace some of the recent losses. That low also comes in at the 200-week simple moving average (SMA), which has been a reliable support level throughout recent years. With that in mind, further upside looks likely for the short term. However, there is obvious risk with such a play due to the heightened volatility and the distance from a reasonable stop-loss.
DAX rebounds after recent decline
The DAX has finally managed to find some buyers following a sharp decline throughout the past two-weeks.
That took the index below the crucial 11,598 support level, pointing towards further downside to come. However, for the time being, we are in retracement mode, which could be substantial given the recent declines. As such, further upside looks likely for the short-term. The previous decline below 11,598 points towards this rebound being a likely retracement before we turn lower once again.
Dow rebounds from Fibonacci support
The Dow Jones is an outlier here, with the index remaining within an uptrend from a wider perspective.
The retracement and respect of the 76.4% Fibonacci level (25,220) points towards further upside for the near term. Once again, this comes with caveats, as the sheer volatility evident over recent days proving that there is a strong chance that we could see the bears come back in at some point.
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