FTSE 100, DAX and Dow decline into key Fibonacci support
FTSE 100, DAX and Dow declines bring about key Fibonacci support levels.
FTSE 100 declines back into trendline support
The FTSE 100 has slumped overnight, as losses throughout Asian markets take their toll on UK stocks. This has taken the index back below the 61.8% Fibonacci retracement level, with the price currently challenging the descending trendline.
We need to see a break below 7474 to provide confidence of a wider bearish move for the index. Until then, there is a chance of another rebound from either trendline or 76.4% Fibonacci support.
DAX falls into lows of the week
The DAX is also on the slide, with the index falling back into Tuesday's low of 13,437. This is between the 61.8% and 76.4% Fibonacci levels, highlighting the potential for us to see a rebound from here.
However, should we see a breakdown below 13,362, it would point towards a likely wider bearish phase coming into play.
Dow continues its drift lower
The Dow Jones has also seen another leg lower, although to a lesser degree. The recent bout of weakness appears to be a clear retracement phase, with another leg higher likely before long.
A break below 28,787 would start to bring about a more worrying picture for the index. However, until that happens it is likely that this is a short-term pullback before we see the index push higher once more.
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