FTSE 100, DAX and Dow gain ground, yet the bears continue to lurk
FTSE 100, DAX and Dow continue to regain ground, yet wider bearish trend likely to return before long.
FTSE 100 rebounds, yet could this be a short-term move?
The FTSE 100 is on the rise again today, with an overnight pullback proving short-lived. This rally could be the latest leg in a wider uptrend seen throughout last week.
However, the decline below 5473 seen on Friday highlights the potential that we are seeing a retracement here rather than an all-out recovery. With that in mind, short-term gains are viewed as a potential precursor to another move lower, with the 76.4% Fibonacci retracement level (5712) providing an interesting area for such a move to potentially play out. These short-term gains need to take us through 5828 to negate the potential view that this market could be rolling over.
DAX pushes higher despite previous breakdown
The DAX rally has taken the index above the 76.4% Fibonacci retracement, potentially pointing towards a continuation of the recent uptrend despite the break below 9524 and 9440 seen yesterday.
With that in mind, we need to see a break through 10,119 to bring about a continuation signal which would negate the bearish signal that come yesterday.
Dow Jones climbs back towards previous peak
The Dow Jones has been on the rise since retracing back into the 76.4% Fibonacci retracement level on Monday.
The recent uptrend does still remain intact for this market and therefore it makes sense to expect a rise through the 22,684 level to continue that move. However, with a wider bearish trend in play, another major decline remains the most likely event before long.
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