FTSE 100, DAX and Dow fall towards key support
FTSE 100, DAX and Dow decline into key support levels, with further losses likely if broken.
FTSE 100 continues its decline after brief retracement
The FTSE 100 is on the slide this morning, with yesterday's rebound faltering as expected. This has brought about another period of weakness to build on the failed attempt to break through the 6324 level.
With the mid-July sell-off taking the index back below the 6026 lows, there is a risk that we could see a similar thing here with a break back below the 5995 level established on 10 July. Conversely, this could be a retracement of the rally from 5995, where the 76.4% Fibonacci support levels provides the final hurdle to overcome in this bearish move.
As such, further downside looks likely, yet the reaction to 6072 and 5995 support levels will be key.
DAX declines take us close to key support
The DAX declines have continued, with the price falling below the 76.4% Fibonacci retracement level. That points towards a potential decline through the key 12,807 swing low from Monday.
Ultimately, we would need to see that low broken to signal a wider bearish move coming into play.
Dow Jones back at key support amid recent sharp decline
The Dow Jones is on the back foot once again today, with the index building on recent losses to fall back to the key 26,441 level. A break below that threshold provides us with a bearish double top formation.
As such, much of the forthcoming outlook will be dictated by whether to break below the 26,441 level or not.
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