FTSE 100, DAX and Dow expected to see further gains before long
FTSE 100, DAX and Dow expected to push higher before long, with recent weakness unlikely to last for long.
FTSE 100 expected to regain ground after Fibonacci rebound
The FTSE 100 has started to show signs of life again, with the recent retracement seemingly over after we touched and rebounded off the 61.8% Fibonacci support level at 7352.
That points towards the potential for a recovery, yet confirmation of that bullish view came with a rise through the first swing high at 7451. With that in mind, we are likely to push higher from here, with the price challenging the 7474 resistance level this morning. Only a break below 7352 would bring about a less bullish short-term view for the FTSE.
DAX breaks previous highs after recent retracement
The DAX is ahead on its recovery, with the index reaching fresh highs overnight after a rally off a deep retracement at the start of the week.
That rise above 13,810 points towards a continuation of the wider bullish trend. With the price struggling to really gain traction, we could see short-term declines for another pullback. Should that occur, it would be perceived as a short-term phenomenon, with a break below 13,655 required to negate the bullish outlook that remains in play.
Dow Jones easing back from trendline resistance
The Dow Jones rally is coming under pressure following a rally into trendline resistance, with the index starting to head lower. This comes off the back of a bullish tilt from the 76.4% Fibonacci support level on Tuesday.
We could easily see another pullback into that Fibonacci support level, yet ultimately this period of weakness would have to see prices fall below 28,957 to have wider bearish consequences. Until then, there is a good chance we are seeing a retracement phase which ultimately resolves with another move back into the 29,570 peak.
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