FTSE 100, DAX and Dow regain ground from key support
FTSE 100, DAX and Dow attempt to build bullish momentum, following a period of downside for stocks.
FTSE 100 attempts to build a base, as another sell-off fails
The FTSE 100 declines seen yesterday have once again held up around trendline support, with the index starting to regain ground this morning.
Given the sharp declines we have seen throughout the last week, there is a chance we are attempting to build a base following a period of downside that has taken the price back towards the 76.4% Fibonacci support level of 6072. With the price attempting to break through the 6130 resistance level, a rise through that swing high will be key in determining whether we continue to move higher from here. Ultimately, we will need to see a break through either 6164 or 6080 to signal the end of this consolidation phase.
DAX turning higher from Fibonacci support once again
The DAX is starting to regain ground from the 61.8% Fibonacci retracement support level at 12,750 this morning. This area of support has stifled any downside momentum over recent trading days, and it is looking to do something similar today as the DAX starts to turn higher.
However, we have key levels up ahead that need to break if we are to see the index really gather momentum. As such, it is worthwhile noting that bullish momentum starts building on a break through levels such as 128,24 and 12,851. However, a break back below the recent low of 12,744 would signal the potential for further downside.
Dow starts to regain ground after respecting trendline support
The Dow Jones has turned higher from a descending trendline this morning, with the 50% retracement of the rally from 25,417 also coming into play.
This points towards a potential period of upside starting to emerge, with a rise through the 26,443 level building a case for a short-term period of upside. However, beyond the resistance level, we would need to see the 26,703 level broken to negate the recent trend of lower highs.
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