FTSE 100, DAX and Dow downside could bring buying opportunities
FTSE 100, DAX, and Dow are drifting lower, yet this could provide a buying opportunity given recent bullish breaks.
FTSE 100 turning lower after rally through key resistance
The FTSE 100 has been drifting lower since its fleeting move through the 7591 level yesterday.
An easing in the recent bearish GBP trend has certainly curtailed this index for the time being, yet there is a chance that we are looking at a retracement phase before the index continues its upward trajectory. A break below the 7470 swing low would negate this bullish sentiment, yet the move through 7591 has certainly raised the likeliness of a bullish phase coming into play.
DAX takes a breather after bullish breakout
The DAX has provided a much more clear-cut breakout this week, with the index rising through the 12,465 swing high.
That points towards further upside to come, with any short-term downside looking like a buying opportunity more than anything. The index is starting to ease back, raising the possibility of a retracement phase. As such, watch for a breakdown below the 80 level on the stochastic oscillator as a signal that short-term momentum is turning bearish. Should such a move occur, it would be perceived as a retracement phase, with a wider bearish view only in play if the price eventually breaks below 12,193.
Dow retracement to bring bullish opportunities
The Dow Jones has started to weaken off the back of a rally through 27,345 yesterday.
That break into a new high points towards another resurgence before long, and any short-term downside looks like a buying opportunity. A break below 27,068 would bring about a more bearish outlook, yet the bulls are likely to come back into play before then.
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