Levels to watch: FTSE 100, DAX and Dow
Global markets are drifting lower, yet with uptrends in play for the FTSE 100, DAX and Dow, such downside looks like it could provide a good buying opportunity.
FTSE 100 retraces within recent uptrend
The FTSE 100 has been drifting lower after a break through the 6910 resistance level earlier in the week. There is a strong chance we could see another move higher from here, with a break below 6776 required to negate the uptrend that has been in play.
Until then, this pullback could provide another buying opportunity for the short term.
DAX pullback provides buying opportunity
The DAX is also retracing within a short-term uptrend. That provides us with a potential buying opportunity, with a break below the 10,679 level required to negate the short-term bullish trend.
A break through 10,987 would provide greater confidence in this uptrend, yet with higher highs and lows continuing for now, further gains seem likely.
Dow rallies into SMA resistance
The Dow Jones has rallied into the 200-day simple moving average (SMA) on the four-hour chart this morning, with the index starting to drift lower.
There is a good chance that we are going to see further upside come into play before long, yet this retracement could last for some time. Thus, it makes sense to view this downside as a precursor to a better buying opportunity, with a break below 22,587 required to negate the bullish trend in play.
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