FTSE 100, DAX and Dow start to break lower
FTSE 100, DAX, and Dow all turn lower, yet could this bring a buying opportunity?
FTSE 100 declines take index close to key support
The FTSE 100 has been falling sharply since Wednesday morning, with the break below 7550 signalling an end to the short-term recovery.
We are seeing the index approach the key 7484 support level, which would bring a wider bearish picture if broken. As such, the ability or inability to break below that level will be key in determining where we go from here.
DAX breakdown points towards potential wider bearish picture
The DAX recovery has proved short-lived, with the index selling off sharply.
A break below the 12,169 support level would break the June uptrend to instead raise expectations that we are retracing the wider 11,598-12,662 rally. A break below 12,169 would bring a bearish continuation signal, yet until that happens we could yet see a rebound which would be confirmed with a stochastic break up through 20.
Dow pullback deemed a retracement
The Dow Jones has similarly turned lower following a recent shift in sentiment, with the break below 27,288 bringing about a bearish short-term signal.
The wider bullish trend remains in play, and this pullback is likely to provide us with a buying opportunity before long. A deeper Fibonacci retracement would bring such a buying opportunity, and thus it makes sense to await further downside. Alternately, watch the shorter-term intraday charts for bullish reversal signals within this downturn.
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