FTSE 100 and Dow could rebound after overnight losses
FTSE 100 and Dow start to decline, yet wider uptrend could point to an impending rebound.
FTSE 100 turning lower despite sterling weakness
The FTSE 100 has been on the rise over the past month, with the index hitting the highest level in almost five months last Friday. We have seen significant sterling weakness over the past 24 hours, yet that hasn’t quite transmitted into FTSE gains, with the early price action seeing the index fall back today.
Interestingly, we have an inside trendline of support worth watching, which is being accompanied by a crucial support level at $75.25. Should we see that level broken, it would bring about a more bearish short-term picture. However, until that happens there is a chance we will see the bulls start to come back into play from trendline support. A break through $76.36 would provide greater confidence of that bullish move coming to pass.
Dow Jones pullback provides potential buying opportunity
The Dow Jones has seen sharp losses overnight, with the index declining from trendline resistance overnight. The uptrend remains intact until we see the price decline below 28,367.
Given we have seen the index drop into the deep retracement zone between the 61.8% and 76.4% Fibonacci levels, there is a good chance we will see the index turn higher from here. As such, a bullish outlook is in play here, with a break below 28,367 required to negate that outlook.
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