FTSE 100, DAX and Dow head higher after recent declines
FTSE 100, DAX and Dow regain ground, yet questions remain given the depth of recent pullbacks.
FTSE 100 on the rise after recent declines
The FTSE 100 is turning higher this morning, after a deep retracement which came past the 76.4% Fibonacci level and 200 simple moving average (SMA) support.
There is a good chance this rebound could be short-lived, with a break through 7638 required to bring about a more reliable bullish signal. Until then, there is a good chance we could see further downside following this current move higher.
DAX regaining ground after recent declines
The DAX has similarly been on the rise, coming off the back of a sharp decline below the 76.4% Fibonacci retracement level. Importantly we did not see the 15,361 support level broken, signalling a continuation of the recent uptrend.
Nevertheless, much like the FTSE, the depth of that recent pullback does signal a chance that we are looking at a reversal here. However, we would need to see 13,361 broken to tell us as much.
Dow Jones turns higher from 61.8% Fibonacci retracement
The Dow Jones is also regaining ground, following a pullback into the 61.8% Fibonacci retracement level. With the recent US outperformance, it always seemed that we were looking at a short-term pullback for the Dow.
Thus, further upside seems likely, with a break through 29,348 required to bring about a signal that we are heading into another likely leg higher.
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