FTSE 100, DAX and Dow break lower from resistance
FTSE 100, DAX and Dow turn lower after recent rally into key resistance.
FTSE 100 rallies back into 7636 resistance
The FTSE 100 has been gaining ground once again overnight, with the index rising into the 7636 resistance level. That level has been respected on a number of occasions over the course of the past fortnight.
A rally through that 7636 resistance level would provide us with a new bullish outlook. However, we are instead seeing the index break lower once again. Look out for a break below the 7563 swing low to provide evidence that this pullback is set to persist.
DAX breaking lower from trendline resistance
The DAX has seen another leg lower, following initial signs of a reversal from trendline resistance yesterday. The size of the rally into that trendline does provide us with a significant area for the index to move into.
Given the current intraday creation of lower highs and lows, it looks likely we will see further downside from here, with a break through 13,508 required to negate this bearish short-term outlook.
Dow Jones breaking support, with further downside likely
The Dow Jones has tentatively broken below the 28,787 support level this morning, confirming the recent rally as a retracement of the sell-off from 29,057.
The recent rally appears to be under pressure, with a break below 28,787 providing us with a bearish short-term outlook that signals a likely deeper retracement of the 26,121-29,057 rally. With the 61.8% Fibonacci level down at 28,479, it is clear that such a pullback could have significant losses attached. Alternatively, a break through 28,975 would be required to negate this bearish short-term outlook.
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