DAX consolidating after rebound
Off the back of a sharp rebound on Tuesday morning, the DAX has been drifting gradually lower. The shallow nature of this current move points towards a bullish break higher before long.
However, that doesn’t rule out another short-term move lower for a deeper retracement, with trendline resistance coming into play on the stochastic oscillator. Watch for a break above 12,652 as a signal that this current retracement is over.
Dow threatens to post deeper retracement
The price fell marginally below the low set yesterday morning, meaning the Dow Jones failed to maintain the trend of higher highs and higher lows.
The ability to break above 25,298 would signal that this is not something to worry about. However, there is a possibility that this is providing a precursor to another move lower, with a bearish divergence between the price and the stochastic highlighting this. Should that occur, the Fibonacci support levels at 23,947 and 23,628 would come into play as potential buying areas.