Levels to watch: FTSE, DAX and Dow

Indices pull back following gains yesterday. However, with the uptrend still in play, could this provide a good buying opportunity?

Trader looking at data on screens
Source: Bloomberg

FTSE pullback likely to be short lived

The FTSE has been weakening overnight, with price marginally falling below the 76.4% retracement this morning. Given the uptrend in play and the fact price has not broken below 6893, a bullish outlook remains in play.

As such, we would need to see a closed hourly candle below 6893 to negate this bullish short-term view. This pullback appears to provide a good opportunity to get long at an advantageous price set within a clearly defined uptrend.

DAX pullback unlikely to last

The DAX has also pulled back this morning, with the index breaking below both trendline and horizontal (10,673) support. However, the key swing low that needs to be taken out for the current bullish outlook to come into question is 10,632.

As such, until we see an hourly close below 10,632, a bullish outlook remains. 

Dow pullback likely to bring further gains

The Dow is selling off heavily this morning, following yet another new high yesterday. We have seen this before and typically retracements like this end up resolving with another move higher. Friday’s pullback into the 61.8% exemplifies that.

With price currently utilising the 61.8% as support, there is a chance we will head higher from here. Otherwise, we are looking at the 76.4% (18,565) level as another good entry point to get long. This bullish view remains unless price breaks and posts an hourly candle below 18,533.

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