FTSE 100, DAX and Dow weakening after recent rebound

FTSE 100, DAX and Dow gains could come under pressure after rallying into resistance zones.

FTSE 100 struggling to break through Fibonacci support

The FTSE 100 has managed to surge higher after slumping into the 76.4% Fibonacci support level at 5861.

With the price attempting to break into the 6062 level this morning, we are seeing it struggle to extend the bullish break from consolidation that looked to be taking shape. As such, the bias will be determined by whether we break back below the 5996 swing low established yesterday, or up through the 6062 and 6086 resistance levels.

DAX starts to weaken from Fibonacci resistance

The DAX has rallied into a notable confluence of resistance, with the 76.4% Fibonacci level (12,737) coming in just below the head and shoulders neckline of 12,744.

With the price starting to weaken from this point, there is a chance we could see the index weaken once again. The stochastic is starting to roll over from overbought territory, highlighting that possibility. As such, the outlook will be determined by whether we break through 12,614 support or the 12,737 level.

Dow rallies into deep retracement zone

The Dow Jones has been on the rise since Friday's low, with the index pushing through resistance to move into a 11-day high this morning. However, we are not out of the woods yet, with that rally having taken us into the deep retracement zone between the 61.8% and 76.4% Fibonacci levels.

With that in mind, there is a potential for another turn lower, especially given we are seeing a bearish stochastic cross in overbought territory. With that in mind, watch for a move back below the 80 threshold on the stochastic to provide a possible bearish signal. Conversely, we would need to see a break through the 26,886 resistance level (76.4% Fibonacci) to signal a potential push back towards 27,164 resistance.

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