|The FTSE fell sharply yesterday, following on from a week long period of consolidation. This pullback comes at a time when the uptrend had been slowing and thus this move portrays last week as a period of exhaustion. The shallow rally overnight has since created a flag formation which points towards a high likeliness of further losses today. With that in mind, there is a good chance that we have seen some form of top for this rally, with a retracement in the offing. As such, a closed candle below 6207 is the key for another move lower, with 6197 and 6179 the next key support levels. This seems highly likely, given the sharp pullback we have seen since the open. Interestingly, this takes us back into the three-week range of May. |
DAX begins to trend lower
The DAX also took a turn for the worst yesterday, following on from a clear uptrend over recent weeks. The ability to break through yesterday’s low of 10228 is key here, with an hourly close below likely to spark another sharp move lower. Given this possible top in play, we would need to see an hourly close back above 10291 to negate yesterday’s bearish moves. Key support levels of note are 10228, 10175 and 10154, with resistance at 10291 and 10328.
Disclaimer: Statements in this article should not be considered investment advice, which is best sought directly from a qualified professional.