FTSE 100: Sell off may lead to reversal
The chart below on a daily time-frame shows the index FTSE 100 trading below all moving averages. Additionally, it is displayed that a steep sell off has taken place in the markets where the price has been trading towards the support zone (colored in green) which is priced at $7178.98. The previous time the price had touched this level dates back to the 28th of May. This does enforce a bearish sentiment.
However, due to the volume and force of the sell off, the markets may see a reversal. Moreover, if this does take place, then the price may begin to trade towards resistance (colored in red) which is priced at $7648.46.
The Balance of Power chart below indicates that the bears are in full dominance at present. However, if the reversal takes place, then this will allow the bulls to control the market.
Major support: 7178.98
Major resistance: 7648.46
German DAX: Bears hold dominance
The chart below on a daily time-frame shows the German index DAX trading below the moving averages which shows a bearish sentiment. Additionally, DAX is trading in a down trend which emphasizes the strength of the bears. Moreover, it can be displayed below that the price is trading substantially close to the down line of the downward channel and is driving towards the support region (colored in green) which is priced at $11,688.05. The current resistance zone (colored in red) which is priced at $12,871.08 may not have the bulls strength as of yet to move the price up to this level.
However, if the index gradually increases in price it may increase the possibilities of doing so.
The Balance of Power chart below shows the bears to hold full dominance and price control over the market for the German DAX. It may be the case that for now the price will possibly stay on the bears side.
Major support: 11,688.05
Major resistance: 12,873.08