FTSE 100, DAX and Dow expected to rally despite overnight weakness
FTSE 100, DAX and Dow drift lower overnight, yet recent bullish trends point to further upside.
FTSE 100 expected to turn higher before long
The FTSE 100 is continuing to lose ground, following on from Monday’s rally into 7259. The market has been drifting lower since, with the intraday creation of lower highs and lows signalling the potential for further downside.
However, given the uptrend seen throughout the past fortnight, it is likely that this period of weakness is a precursor to further gains. As such, while we could see further short-term downside, it is viewed as a retracement of the 7110-7259 rally unless we see a break below that 7110 low.
DAX drifts lower, yet bullish trend remains
The DAX has been drifting lower overnight, following on from yet another bullish session yesterday.
The recent uptrend looks likely to persist given the shallow nature of this decline, with another strong move higher seemingly on the cards. As such, this pullback should be seen as a buying opportunity, with this bullish view only negated if we see a break below 12,387.
Dow declines bring price into trendline support
The Dow Jones has similarly drifted lower overnight, with the price hitting an ascending trendline in the process.
The uptrend seen over the past week signals a high likeliness of further gains, with a break below 26,678 required to negate this bullish outlook.
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