Levels to watch: FTSE 100 and Dow
Both US and European markets are trying to find their feet amid recent declines, yet with key resistance levels up ahead we haven’t seen a bullish resurgence signal yet.
FTSE 100 turning higher once more after volatile evening
The FTSE 100 managed to rally back into the 6760 resistance level last night, following on from yet another bearish turn off that same region of resistance.
However, while we keep seeing the 6760 region provide resistance to subdue any upside momentum, the rising lows in play are starting to heighten the chances of a bullish breakthrough before long. With that in mind, watch for whether the index can break through the 6760 mark as a signal of whether we are going to see further upside or not for the near term. However, beyond that we would need a break through 6910 to provide a wider bullish outlook.
Dow consolidating after wedge breakdown
The Dow Jones has sold off through the bottom of a rising wedge, providing a sign of potential bearish price action to come. Yesterday’s subsequent rally back into the previous peak of 23,442 need not be a worry for that bearish signal, yet the subsequent inability to break below the 22,813 mark would.
With the price currently consolidating around that area, a break below the 22,813 level would provide greater confidence that a bearish phase is going to take shape. Alternately, a rally through the 23,442 peak would point towards another bullish surge coming into play.
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