Levels to watch: FTSE 100, DAX and Dow
Short-term weakness for stocks provides us with a potential buying opportunity.
FTSE 100 pullback brings potential buying opportunity
The FTSE 100 is weakening in early trade, coming off the back of a short-term resurgence through the latter part of last week.
While there is a good chance that this recent resurgence is a retracement of the sell-off from 7263, there is likely to be further upside to come. Thus, the pullback we are currently seeing is expected to be fleeting, with a break below 7095 required to bring about the bearish view once more. Until then, another leg higher looks likely before long.
DAX turning lower from key resistance level
The DAX has enjoyed a good run of late, with the price seemingly respecting this 11,693 support level dating back to early-2018.
The ability to break through that level is key to retaining the bullish sentiment that has dominated the past three weeks. Keep an eye out for the 11,586 swing low, which provides the first hurdle that needs to be overcome if a more bearish picture is to emerge.
Dow in retracement mode
The Dow Jones has similarly been moving lower since pushing higher last week, with the index looking likely to drift lower over the near term.
However, looking at recent price action, we seem to have bottomed out, and thus a push through the 26,168 peak looks likely before long. As such, any further downside looks like a buying opportunity unless we see a break below 25,911.
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