Levels to watch: FTSE 100, DAX and Dow

European and US indices continue to weaken, yet with the recent uptrend remaining intact, there is reason to believe we will see a bullish reversal in the near future.

FTSE 100 breakdown brings wider range into play

Yesterday’s sharp sell-off brought about a drop below trendline support, with the FTSE 100 hitting the lowest level seen in over two weeks.

This brings about a focus on the wider range, which utilises the 7553 as the low. A break below that level would point towards a greater potential of a strong sell-off. However, until that happens, it makes sense to look for Fibonacci support in the near term, with the price currently approaching the 76.4% level at 7595.

DAX pulls back towards 76.4% retracement

The DAX is also selling off sharply, with the price breaking below the 61.8% Fibonacci support level this morning.

The uptrend seen throughout the past month would be negated with a break below 12,464. However, until that happens, there is reason to believe we could see the index turn higher from the 76.4% retracement in the near future.

Dow pulls back, yet uptrend remains

The Dow Jones is similarly weakening, with the price dropping towards the 61.8% retracement this morning.

Crucially, this uptrend remains in play unless we see a break below the 24,927 mark. Until then, long positions look attractive on Fibonacci support.

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