FTSE 100, DAX and Dow expected to rise despite recent declines
FTSE 100, DAX and Dow declines look like a buying opportunity, with the resurgence beginning to take shape.
FTSE 100 consolidation likely to bring further upside
The FTSE 100 has been consolidating through much of this week, with the index seemingly pausing before we see another leg higher.
That next bullish move looks like it could be taking shape given the recent creation of higher highs and lows. Watch for whether we can break through trendline resistance for now, with a rally through that line providing greater confidence of the next leg higher. Only with a break below 7315 would this recent downside look like the beginning of a wider period of weakness.
DAX turning higher after recent retracement
The DAX looks similarly bullish over the course of June, with the creation of higher highs and higher lows in place unless we see a break through the 11,986 swing low.
The downside seen through the course of the week was always likely to be a retracement before we turn higher. That bullish move appears to be occurring, with today’s break through 12,319 bringing further confidence of a DAX resurgence.
Dow drifts lower, yet rebound looks likely
The Dow Jones has also lost ground over recent trading days, with the index seemingly trading within a falling wedge formation.
A break through the 26,689 level would bring confidence of the next move higher for the index, with a decline below 26,414 required to negate this bullish outlook.
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