Levels to watch: FTSE 100, DAX and Dow
The FTSE 100 and Dow have shown signs of a potential impending period of downside. However, with markets still within uptrends, the bullish picture still remains.
FTSE 100 declining towards key breakdown level
The FTSE 100 looks set to turn lower again, following a rebound after the close on Friday.
The decline seen over the past week has brought the index back towards the crucial 7382 support level. A drop below there would signal the beginning of a wider bearish phase for the FTSE 100. On the flipside, a rise above 7458 would bring about a more bullish outlook for the coming days.
DAX uptrend remains intact despite slowing gains
The DAX has been climbing higher over the past fortnight, with the uptrend continuing to persist into the end of last week.
The ability to break through the 12,354 peak will be key in continuing this uptrend. A bearish picture only starts to emerge with a fall below 12,236 and 12,181.
Last week’s Dow drop raises questions
The Dow has been rising off the back of a breakdown on Thursday, which took the index back to the 26,310 support level. That creation of flatlining lows provides us with a warning sign of a potential breakdown to come.
As such, watch for a possible turn lower from here, with a bullish continuation signal coming with a rise through 26,700. A bearish phase only emerges with a fall back below 26,310.
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