Levels to watch: FTSE 100, DAX and Dow
FTSE 100, DAX, and Dow have all moved into trendline in one form or another. With uptrends still in play, this could be a good buying opportunity for indices.
FTSE 100 falls into support trendline
The FTSE 100 has retraced into trendline support this morning, as the index pauses within an uptrend that has been in play throughout the past fortnight.
A break below 7370 would bring about a more bearish outlook. Until then, we look likely to push upwards from here in a continuation of the current intraday uptrend.
DAX finds support on minor swing low
The DAX has retraced into the 11,911 swing low overnight, with the recent uptrend coming into question.
A break below that level would give us greater confidence of a bearish breakdown from here. However, until then there is a good chance we could see the bulls come back into play today. Given the shallow retracement we have seen this far, a break through the 12,032 level would also serve as a good bullish signal.
Dow finds support at prior resistance level
The Dow Jones has been moving lower, with the price falling into the 26,241-26,277 zone. That zone represents the February and November peaks, which are now expected to provide support rather than resistance.
Given that we have moved lower into a deep retracement between the 61.8% and 76.4% Fibonacci levels, this looks like a good buying opportunity, with a bullish outlook in play unless we break below 26,123.
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