FTSE 100, DAX and Dow rally after brief pullback
FTSE 100, DAX and Dow rebound despite yesterday’s coronavirus fueled decline.
FTSE 100 rebounds from confluence of support
The FTSE 100 declined into our trendline and Fibonacci confluence zone, with the index subsequently turning higher.
This points towards the recent decline being a likely retracement rather than a reversal, with a drop below 7474 required to bring a wider bearish picture. As such, further short-term upside seems likely. However, with major trendline and horizontal resistance up ahead, significant hurdles remain that could stifle such gains.
DAX surges after 61.8% retracement
The DAX managed to drive through trendline resistance overnight, following a sharp and brief pullback into the 61.8% Fibonacci support level.
Crucially, this rally has taken us through the previous record high, raising the likelihood of further upside to come. As such, another bout of gains looks likely from here, with a bullish outlook in play unless we see a break below 13,361 support.
Dow rallies into crucial 29,349 resistance level
The Dow Jones has managed to rebound into the crucial 29,349 resistance level overnight, with the hourly chart highlighting the importance of this threshold.
A break through this level would bring a renewed bullish outlook for the index. Until that happens, there is a chance we could drift lower from this level. Given the fact that we no longer create lower highs, it is likely that any short-term downside would be a precursor to further gains. As such, a bullish outlook is in play unless we see a break below 29,150.
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