FTSE 100, DAX and Dow ease back after recent gains
FTSE 100, DAX and Dow begin to show signs of weakness after recent gains.
FTSE 100 turning lower after bullish surge
The FTSE 100 managed to push through Monday’s peak of 7553 overnight, bringing about a fresh four-month high.
This is also a key resistance level, with the wider 76.4% Fibonacci retracement of the 7730-6998 decline coming into play at these levels. The price is starting to turn lower, yet the intraday picture remains bullish for now. As such, this pullback looks likely to be a temporary move, with a bullish outlook remaining unless we see a break below 7495.
DAX drops below key support
The DAX dropped below the 13,253 support level yesterday, following on from the failed attempt to break into a fresh high.
This points towards the possibility of further downside for the short term, yet such a move would be viewed as a retracement of the rally from 12,884. As such, we could see further short-term downside, yet the bullish theme is expected to resume before long.
Dow continues to grind higher
The Dow Jones is outperforming, with the index failing to see any notable pullback within this recent rally. Nevertheless, we are certainly seeing the ascent slow, with each rally failing to overcome Monday's high of 28,340.
That could simply mean we are seeing a temporary consolidation before we surge once more. However, it could also be the apex of a rising wedge formation. As such, the directional guide will come with a break through either 28,340 (bullish), or 28,163 (bearish).
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