FTSE 100, DAX and Dow lose momentum
FTSE 100, DAX and Dow has lost momentum. But will this mean a bearish or bullish phase is impending?
FTSE 100 rebound loses energy
The FTSE 100 is slowing in its ascent, with the index grinding higher after a strong move higher at the back end of last week.
This decline in momentum could allude to a potential short-term pullback, where a break below 7210 would provide the first signal of such a move. Until that happens, there is still a chance of further upside, with trendline support coming into play once again.
DAX showing signs of bearish reversal
The DAX appears to be topping out, with the failure to break through 61.8% Fibonacci resistance providing an end to the creation of higher highs.
With that in mind, a break below the 13,046 level would bring about a bearish signal for the index, ushering a period of downside to follow up on the double top completed on 2 December.
Dow Jones drifts towards trendline support
The Dow Jones has seen little volatility at the start of this week, with the index gradually drifting towards an ascending trendline formed throughout the past week.
Watch out for further downside for the short term, with a break below trendline support required to maintain this current trend. Until then, there is a good chance that this decline is a precursor to another leg higher. Watch for a break through 28,015 to bring about a renewed bullish outlook.
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