FTSE 100, DAX and Dow rebound unlikely to last
FTSE 100, DAX, and Dow have gained ground overnight, yet with bearish pictures having emerged throughout recent days, further downside looks likely.
FTSE 100 rebounds yet bearish sentiment remains
The FTSE 100 has managed to regain ground overnight, with the index rising up through the 7064-7078 resistance zone.
While we have seen that move, the index remains within a downtrend given the continued creation of lowers highs and lows. With that in mind, another leg lower looks likely from here, with a break through the 7145 swing high required to bring expectations of further upside.
DAX rebounds from key support
The DAX has also regained ground overnight, with the index rising off the back of a move into the 11,269 historical low from late-March.
While this could be the beginning of a bullish phase, we would need to see a break through the 11,548 level to start to negate that bearish picture. Until then, there is a chance we could start seeing the price turn lower from Fibonacci resistance that is currently being contested with.
Dow rallies into key resistance
The Dow Jones has similarly gained ground overnight, with the price rising into the head and shoulders neckline of 25,765.
That points towards a potential bearish turn from here, with a rise through this point of resistance required to bring further short-term gains. Ultimately, we will need to see the price rise through 26,425 to bring about a wider bullish picture. Thus, whether we see it occur from here or marginally higher, it does look likely that further downside is around the corner.
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