Levels to watch: FTSE 100, DAX and Dow

FTSE 100 and Dow Jones are showing signs of short-term weakness, while the DAX looks set to reverse the roles as it hopes to rebound from trendline support.

FTSE 100 showing signs of weakness

The FTSE 100 seems to be struggling around a key resistance level, with the failure to rally through yesterday’s high seeing the index turn lower towards key support levels.

While we have seen a wider consolidation over the past two months, the creation of higher highs doesn’t seem to be providing any sort of bullish breakout yet. This points towards the potential for a move lower in the near future. The two-hour chart highlights the potential for this, with lower highs in play this morning. Should we post an hourly close below 7706, then this would point towards the bears coming back into play.

DAX rebounding from trendline support

The DAX is starting to move higher following a period of weakness over the past two days.

With an ascending trendline helping provide support over the near term, further upside looks likely unless we break below 12,535.

Dow pulling back after recent gains

The Dow Jones has started to show signs of weakness, following the recent rally through the 25,592 July peak.

With the early rebound proving short-lived there is a good chance we will see further downside if the price posts an hourly close below 25,505. However, be aware that this is likely to be a period of retracement from the wider rally from the 25,114 low. 

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