FTSE 100, DAX and Dow decline into key support
FTSE 100, DAX and Dow declines bring price into crucial support levels.
FTSE 100 declines within recent uptrend
The FTSE 100 has been on the slide, with the price falling sharply in response to an initial break below 7389 support.
For the most part this looks like a retracement of the 7213-7440 rally, thus bringing the 7300 and 7266 Fibonacci support levels into play. Those deep retracement levels look attractive for long positions, with a break below the 7213 level required to negate this current bullish outlook.
DAX fails to break through key resistance
The DAX fell short once again, having attempted to break through 12,496 for the third time in as many weeks.
This current decline could be part of a consolidation phase, yet a break below 12,142 would bring about a more bearish picture following recent gains.
Dow declines into confluence of support
The Dow Jones has also been on the slide, with the price declining into a confluence of support yesterday.
That crossroads between the 200-period simple moving average (SMA), descending trendline, and the 30 August peak with be a crucial hurdle this market has to overcome for further downside. With recent losses bringing us into oversold, there is a chance we could see the bulls start to take control for the short term. Given the previous retracements within this downturn, it is highly likely we will see such a short-term rebound. However, a break below this zone of support would look to continue the steep sell-off seen yesterday.
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