FTSE 100

FTSE returned below broken neckline of former inverse H&S pattern on strong bearish acceleration from lower top at 6982 that extends for the fourth straight day and dipped so far to 6839. Failure Swing pattern was completed on Tuesday’s extension below former trough at 6891 and signals further weakness. The price is looking 6812 (Fibo 61.8% of 6640/7092 ascend, with close below here to confirm bears and open way towards 6788 (rising 100SMA) and 6746 (Fibo 76.4%).
Daily studies are turning bearish and favor further downside, but oversold Slow Stochastic suggest a pause in recent descend, with no bullish signal being generated yet.
A daily 55SMA cap today’s action and offers good resistance at 6875.

Res: 6875; 6891; 6928; 6964
Sup: 6839; 6812; 6788; 6746

DAX
Dax extends weakness on Wednesday, following Tuesday’s sharp fall that marked the biggest daily loss since 29 Sep. Bearish acceleration that left lower top at 10737, completed Failure Swing pattern on daily chart that resulted in extension to fresh over 2-week lows.
Long red candle from Tuesday weighs on near-term structure, with today’s gap-lower opening and extension to new low at 10412, setting scope for probe below daily cloud base at 10356 and final push towards key short-term support at 10336/10310 (low of 13 Oct / weekly cloud top).
However, today’s price action is so far shaped in Doji that signals indecision, with extended consolidation within the cloud (spanned between 10356 and 10486) seen likely, before bears resume.
Caution on break above cloud top and daily Kijun-sen (10498) close above which would sideline immediate downside threats.
Res: 10500; 10572; 10613; 10737
Sup: 10412; 10356; 10336; 10235

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