FTSE 100, DAX and Dow uptrend remain in play despite pullback
FTSE 100, DAX and Dow weaken overnight, yet uptrends remain intact for now.
FTSE 100 turns lower from trendline resistance
The FTSE 100 has started to reverse lower after rallying into trendline resistance yesterday. With the index having turned higher from a wider 76.4% Fibonacci retracement (5861), there is a strong chance that soon enough we will break higher from this two-month period of consolidation. However, we would need to see a break through the 6324 resistance level to bring about a more confident bullish continuation signal. For the time being, the short-term declines seen overnight look to potentially provide a good buying opportunity if we move into the deep retracement zone of 6163-6189. However, with the pair having turned lower from trendline resistance, there is less conviction of the uptrend, with a break through 6122 (bearish), or 6324 (bullish) providing greater confidence of the forthcoming move.
DAX recovery remains in play despite overnight declines
The DAX pullback seen overnight has been shallow in nature, pointing towards another move higher looking likely before long. With price rising marginally through the 76.4% Fibonacci retracement, another leg higher from here would go a long way to negating the idea that we are in a bearish retracement phase. The rising wedge pattern also adds to that possibility. However, with the overnight pullback proving minimal in nature, another leg higher could take us closer to a wider bullish breakout through 13315. Ultimately, we would need to see the 12807 level broken to negate this short-term uptrend in play.
Dow Jones rally stalls overnight
Yesterday’s gains are yet to overcome Tuesdays losses in the Dow, with the index consolidating below that 28156 peak. With the index trading in a clear uptrend, another move higher looks likely before long, with a bullish outlook remaining in play unless we see a break through the 27623 support level.
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