FTSE 100, DAX and Dow pause within recent uptrend
FTSE 100, DAX and Dow start to pause after another day of strong gains yesterday.
FTSE 100 pulling back from key resistance
The FTSE 100 is easing back this morning, following on from a rally into the 6211 resistance level from late April. The recent uptrend remains intact given the continued creation of higher highs and lows, yet we could see the index pull back as we respect the 6211 level.
Nevertheless, unless we see the index fall below 6040, such a pullback would likely represent a short-term retracement rather than a wider reversal. As such, we could see short-term downside today, yet a bullish trend is in place unless that 6040 level is broken.
DAX breaking below trendline support within recent uptrend
The DAX has started to slow its ascent, with the price falling below a short-term ascending trendline. With the stochastic looking likely to break back below the 80 mark, momentum does seem to be rolling over just as the US-China issue reaches a head.
With that in mind, there is a chance we could see short-term downside in what looks likely to be a short-term retracement. As such, any short-term weakness looks like a brief pullback, with a break below 11,429 required to bring expectations of a more protracted retracement of the rally from 10,865.
Dow Jones remains elevated after recent surge
The Dow Jones has remained elevated over the course of this morning, coming off the back of a surge into the 25,800 level.
The uptrend remains intact whether or not we see a short-term pullback, with a bullish outlook in play unless we see a break below the 25,007 support level.
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