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Levels to watch: FTSE, DAX and Dow

Recent losses for the indices have provided us with what looks like an attractive buying opportunity.

German stock exchange
Source: Bloomberg

FTSE sell-off provides bullish opportunity

The FTSE is falling back this morning, following a strong end to last week. However, with the index having broken key resistance levels on the way up, this current pullback looks like a retracement of the move from the 7357 swing low.

With that in mind, bullish positions are favoured between 7418 and 7394 (61.8% and 76.4% retracements). A break back below 7357 would be required to negate this bullish outlook.

FTSE price chart

DAX drops into Fibonacci support

The DAX has been selling off sharply over the past month, with the price falling back into the crucial 12,180 level. This represents the 76.4% retracement of the move from 11,941 to 12,954.

Keep an eye on this level as a potential turning point for the index, with the wider bullish trend still in place unless we see a move back below 11,941. 

DAX chart

Dow consolidation likely to spark further gains

The Dow Jones has been drifting lower over recent trading days, with the lack of a new high on Thursday morning leading to the creation of a symmetrical triangle. This is perceived as a bullish pattern given the trend coming into it, with the price in a consolidation phase.

Given the expectation of further upside, any move back into the trendline support and 76.4% retracement area (21,515) would look like an attractive buying opportunity. A break back below 21,466 would negate this bullish outlook.

Dow Jones chart

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