FTSE 100, DAX and Dow easing back from resistance
FTSE 100, DAX and Dow start to ease back after rally into key zone of resistance within wider consolidation patterns.
FTSE 100 easing back after latest attempt to break higher
The FTSE 100 attempted to regain ground throughout much of yesterday’s session, yet the inability to break through Tuesday's peak of 6118 could be telling as the index turns lower.
That signals a possible pullback from here, with the wider consolidation phase remaining in play unless we see a break through the 6118 and 6211 thresholds. Until that happens there is a chance we start to reverse lower before long, with a break below 5925 bringing greater confidence that the downside has enough legs to extend back towards the 5666-5717 region.
DAX starts to weaken from key resistance zone
The DAX is similarly turning lower after reaching relatively lofty levels. The break through 11,035 brings just the single hurdle of 11,342 to overcome.
However, with the price failing to break through the 11,231 level on two occasions, we are looking at a potential double top formation coming into play. As such, a break below 10,932 would raise the likeliness of another bearish phase to continue the consolidation seen over the past month.
Dow Jones starts to ease back after rally towards key resistance
The Dow upside is coming under pressure once again, with the price having rebounded towards the crucial 24,903 resistance level. A break through there would signal a potential bullish exit from this consolidation phase.
However, with the price turning lower from a failed attempt to regain Tuesday's peak, there is a good chance the bears will start to gain prominence once more to continue this rangebound market. A break below 24,148 would be required to bring such a bearish signal. Conversely, a break through 24,903 would be needed to bring expectation of further upside to come.
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