News and Trade Ideas (Indices)

[MongiIG]

Dow, Nasdaq 100 and Nikkei 225 all looking strong

Indices have remained in strong form ahead of this week’s key events, with notable strength in the Nikkei as it pushes to its highest level since 1990.

Source: Bloomberg

 

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Tuesday 13 June 2023 

Dow clears 34,000 again

While this index is still lagging the S&P 500 and Nasdaq 100 in terms of overall performance, it is nonetheless showing fresh signs of strength. It has rallied above 34,000 and now sits at its highest level in six weeks. The April and May highs around 34,150 are the next area to watch while the May peak at 34,260 also aligns with the highs reached in February. From there the 34,360 highs from January come into view. Buyers have had it all their own way over the past week, and it would need a reversal back below 33,500 at least to suggest that the rally has been stopped in its tracks.

Source: ProRealTime

Nasdaq 100 hits new one-year high

Against all expectations the rally in the Nasdaq 100 continues. After some brief consolidation earlier in the month a fresh push higher has resulted in a new high for the year and the highest level since April 2022. The next big level to watch is the March 2022 high at 15,260, which also marked the highs in February and was brief support back in December 2021. For the moment there is no sign of any slowdown or reversal developing in the index - for this to happen we would need to see a drop back below 14,300, which marked an area of support towards the end of May.

Source: ProRealTime

Nikkei 225 at fresh multi-decade highs

So much attention has been paid to tech stocks that the Nikkei’s surge to 30-year highs has gone relatively unnoticed. But this rally shows no sign of stopping either, and now the July 1990 highs at 33,170 are coming into view. Beyond this the next big level would be the 1989 highs above 38,000. Shor-term trendline support from early May continues to underpin the index, so a move below 31,500 would be needed to suggest some short-term weakness is in play.

Source: ProRealTime

[MongiIG]

Indices stall ahead of US Fed rate announcement

Outlook on FTSE 100, DAX 40 and S&P 500 ahead of Wednesday’s FOMC meeting.

Source: Bloomberg

 Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Wednesday 14 June 2023 

FTSE 100 continues to be range bound

The FTSE 100 continues to sideways trade in a low volatility range as the British economy expands 0.2% in April, recovering from a 0.3% drop in March, and in line with expectations. The technical levels to watch for a potential break out of the range are Tuesday’s 7,611 high and last week’s 7,546 low and the 200-day simple moving average (SMA) at 7,545. While Friday’s low at 7,546 underpins, the late May and current June highs at 7,655 to 7,660 may still be reached.

Source: ProRealTime

DAX 40 ploughs ahead

The DAX 40 is still trying to reach its May all-time high at 16,333 as German wholesale prices fall for a second straight month by 2.6% year-on-year in May. For the all-time record high to be reached, Tuesday’s high at 16,248 needs to be overcome. Short-term it acts as resistance and as long as it does, a slip back towards Monday’s high at 16,161 may ensue ahead of today’s US Federal Open Market Committee (FOMC) June rate decision and Thursday’s European Central Bank (ECB) anticipated 25 basis-point rate hike.

Source: ProRealTime

S&P 500 trades at levels last seen in April 2022

On Tuesday the S&P 500 rallied for a fourth consecutive day to its 14-month high at 4,375 ahead of Wednesday’s US Fed rate decision at which the central bank is widely expected not to hike its rates but rather do so in July. Above 4,375 lies the minor psychological 4,400 level and further up the 4,421 March 2022 peak. Slips should find support around the August 2022 peak at 4,325. If not, a break out of a rising wedge formation could lead to a swift reversal to the downside if last Thursday’s 4,257 low were to be fallen through as well.

Source: ProRealTime

[MongiIG]

Indices stay under pressure as UK inflation remains sticky

Outlook on FTSE 100, DAX 40 and S&P 500 as UK inflation comes in higher-than-expected.

Source: Bloomberg

 Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Wednesday 21 June 2023

FTSE 100 drops on higher-then-expected CPI

The FTSE 100 has been declining since Friday’s five-week high and is being pushed lower as UK CPI comes in higher-than-expected ahead of Thursday’s Bank of England monetary policy meeting at which the central bank is expected to hike its rates for a thirteenth time, probably to 4.75%. The index is now pressing on the 200-day simple moving average (SMA) at 7,551 and the early June low at 7,546, a fall through which would open the way for the 1 June high at 7,510 to be reached ahead of the May trough at 7,433. Downside pressure should retain the upper hand while Monday’s low at 7,581 isn’t bettered. Further resistance can be seen along the breached May-to-June uptrend line at 7,630 which, because of inverse polarity, could act as resistance.

Source: ProRealTime

DAX 40 sees two consecutive days of lower prices

The DAX 40 has come off Friday’s new all-time record high as investors re-assess the economic outlook and future central bank policy. A slip through Tuesday’s low at 16,067 would put the minor psychological 16,000 level back on the cards, together with the 55-day simple moving average (SMA) at 15,941. Minor resistance above last Thursday’s low at 16,160 sits at Monday’s low at 16,187 with further resistance seen along the breached May-to-June uptrend line at 16,252.

Source: ProRealTime

S&P 500 subdued ahead of Powell testimony

The S&P 500 is seen coming off its 14-month high at 4,447 ahead of Jerome Powell’s US senate banking committee testimony on Wednesday and Thursday which is likely to re-iterate the Federal Reserve’s (Fed) hawkish stance. With the index having slid through its June uptrend line at 4,410, a short-term downside bias is in place. Failure at Tuesday’s low at 4,367 would put last Thursday’s low at 4,348 on the map. Minor resistance is to be found around the minor psychological 4,400 mark and at Tuesday’s high at 4,405.

Source: ProRealTime

[MongiIG]

FTSE 100, DAX 40 and S&P 500 begin new quarter on positive footing

Outlook on FTSE 100, DAX 40 and S&P 500 as a new month and quarter begin.

Source: Bloomberg

 Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Monday 03 July 2023 

FTSE 100 revisits 200-day simple moving average

The FTSE 100 managed to finish last week and month on a positive note but still ended the quarter in negative territory as it continues to underperform its peers. Last Friday’s positive US PCE inflation data, the Federal Reserve’s (Fed) preferred inflation gauge, pushed global stock markets higher with the FTSE 100 reaching the 200-day simple moving average (SMA) at 7,564 on Monday morning’s overnight session. It will need to be overcome for further upside towards the April-to-July downtrend line at 7,635 to be in sight. Slips should find support around the 28 June high and Monday’s intraday low at 7,519 to 7,516, below which further support sits at the 29 June 7,459 low.

Source: ProRealTime

DAX 40 continues to rise on positive sentiment

The DAX 40 shot up strongly at the end of last week to finish the second quarter on a high but is expected to lose upside momentum at the beginning of this week as trading volumes may well thin out with US markets being shut for the 4th of July holiday on Tuesday. Nonetheless the May peak at 16,333 remains in view ahead of the June peak at 16,428. In case of a minor retracement lower taking shape, the late May and early June highs at 16,115 to 16,080 should offer at least initial support.

Source: ProRealTime

S&P 500 trades in 15-month highs

The S&P 500 continues to head higher as solid economic data and slowing inflationary pressures led to renewed risk-on sentiment last week. The April 2022 high at 4,513 represents a possible upside target while last Friday’s low at 4,398 underpins on a daily chart closing basis. Immediate support comes in around the 4,447 June peak.

Source: ProRealTime

[MongiIG]

Dow & Nasdaq 100 return to recent highs, while Nikkei 225 drops back

Both the Dow and Nasdaq 100 have seen a revival in recent days, while the Nikkei’s bounce has stalled this morning.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Tuesday 04 July 2023 

Dow back above 34,000

The index has surged to the 34,000 once more, and sits just below its previous June high. The bounce from the 50-day SMA has created a higher low, and further upside seems likely while this remains in place. Above 34,500 the next target would be 35,000. A drop back below 33,640 would be needed to suggest that a new leg lower is in play.

Source:ProRealTime

Nasdaq 100 still firmly in uptrend

As with the Dow, the index has returned to the highs seen in early June. The uptrend has recovered from the weakness of mid-June, and now a push above 15,260 will open the way to 15,760, and on from there towards 16,630, the record highs of 2021. The price remains overstretched, but the recent recovery has cancelled out any bearish view in the short-term. A reversal back below 14,700 would be needed to suggest fresh short-term weakness has appeared.

Source:ProRealTime

Nikkei 225 edges lower

The index has fallen back this morning, as markets continue to look nervously for any signs of intervention in the FX market by the Ministry of Finance, something that is unlikely to leave the index unaffected. Recent weakness stabilised around 32,500, so a move below this would be needed to open the way to more downside. This might then bring the 50-day SMA into play. A revival above 33,700 would put the price on an upward footing once more, and suggest a move back to 34,000.

Source:ProRealTime

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[MongiIG]

FTSE 100, DAX 40 and S&P 500 on a negative footing

Outlook on FTSE 100, DAX 40 and S&P 500 as the US re-opens after its Independence Day holiday.

Source:Bloomberg

 Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Wednesday 05 July 2023 

FTSE 100 slips on risk-off sentiment

The FTSE 100 trades back in negative territory for the year as it is impacted by the knock-on effect of a five-month low for China's Caixin services PMI which hit sentiment in Asia. Last Thursday’s low at 7,459 may thus be revisited. Below it lies the May trough at 7,433. Resistance above Monday’s low at 7,514 can be seen along the 200-day simple moving average (SMA) and at this week’s high at 7,562 to 7,569. While it caps, the FTSE 100 should remain under pressure.

Source: ProRealTime

DAX 40 continues to slide this week

The DAX 40 shot up strongly at the end of last week to finish the second quarter on a high and early this week rose to 16,211 before coming off again as sentiment deteriorated on weaker data and Germany’s trade surplus falling to a five-month low. The 8 June low at 15,886 may thus soon be tested, a fall through which would push the 15,710 late June low back to the fore. Good resistance above the 29 June high at 16,000 comes in between the late May and early June highs at 16,080 to 16,115.

Source: ProRealTime

S&P 500 back from Independence Day holiday

The S&P 500 is expected to trade on a weaker footing as markets re-open after Tuesday’s Independence Day holiday ahead of the publication of the Federal Reserve (Fed) minutes and as China imposes export curbs on metals used in semiconductors and EVs. This points to some renewed US-China tensions. The June peak at 4,447 is to be revisited, below which there is no support to speak of until Thursday’s high at 4,405. Only a bullish continuation and rise above last week’s 14-month high at 4,458 could lead to the April 2022 high at 4,513 being reached.

Source: ProRealTime

[MongiIG]

Hawkish Fed minutes put pressure on Dow, Nasdaq 100 and CAC40

Indices have come under fresh pressure this morning, after Fed minutes showed a more hawkish outlook for monetary policy in the US.

Source:Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Thursday 06 July 2023 

Dow falls back for another day

The index continues to drop back from last week’s highs, and further losses will put the 50-day simple moving average (SMA) into view as potential support, as it was in mid-June. Below this the 100-day SMA and then the 200-day SMA come rapidly into view. A move below the mid-May lows would firmly alter the medium-term view to a bearish one. Bulls will want a recovery back above 34,500 in order to suggest that the move higher is back in play.

Source:ProRealTime

Nasdaq 100 holds near recent highs

After attempting to rally yesterday the index has fallen back again, though it remains close to its recent highs. A deeper pullback targets trendline support from late April, and then on down to the 50-day SMA. The index has not tested the 50-day SMA since early March, so a pullback to that level would not be too surprising in the near term. Above 15,260, the price will target 15,760, and then on to 16,630.

Source:ProRealTime

CAC40 hits one-week low

The index has fallen back below trendline resistance from the April highs, and is also back below the 50- and 100-day SMAs. A move back to 7100, the support area from May and June, seems likely, and if this is broken the 200-day SMA comes into view. It would need a move back above 7320 to suggest a revived bullish view, and then a break above 7400 to confirm a move higher.

Source:ProRealTime

[MongiIG]

FTSE 100, DAX 40 and S&P 500 are taking a hit amid strong US ADP jobs data

Outlook on FTSE 100, DAX 40 and S&P 500 ahead of Friday’s Non-Farm Payrolls.

Source: Bloomberg

 Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Friday 07 July 2023 

FTSE 100 sinks on rate hike fears

The FTSE 100 is fast approaching its March low at 7,204, tracking losses in Asia and on Wall Street as strong US ADP jobs data reinforced expectations that the Federal Reserve (Fed) will hike rates further. Minor resistance can be spotted at the 7,296 December low and also at the 7,331 24 March low.

Source: ProRealTime

DAX 40 falls through key support

The DAX 40 has now fallen through its April-to-July major support zone on the back of strong US jobs data and downwardly revised German manufacturing PMI which points to a weak economy. The fact that a daily chart close below the 16,625 to 15,710 April-to-July support zone has occurred is technically bearish as it indicates that a significant top has now been formed.

Below the early April low at 14,481 lie the mid-January and late March highs at 15,305 to 15,272 ahead of the 200-day simple moving average (SMA) at 14,948 which now represents a medium-term downside target. Resistance at 15,625 to 15,710 is expected to thwart any attempt of a bullish reversal taking place today.

Source: ProRealTime

S&P 500 slips on strong jobs data ahead of Non-Farm Payrolls

The S&P 500 dropped to a one week low at 4,384 as US ADP Non-Farm jobs data came in much stronger-than-expected at 497k versus an expected 226k in July, forcing the Fed to hike rates further and leading to a surge in global yields while equities came under pressure.

The (redrawn) May-to-July support line at 4,393 is likely to be revisited on Friday around the Non-Farm Payrolls data release, below which lies Thursday’s low at 4,389 and the late June low at 4,328. A drop through and daily chart close below this level would point to a significant top being formed. Resistance can be found between Wednesday’s low and Thursday’s high at 4,430 to 4,434.

Source: ProRealTime

[MongiIG]

Stock indices remain bid ahead of U.S. CPI release

Outlook on FTSE 100, DAX 40 and Nasdaq 100 ahead of Wednesday’s U.S. inflation report for June.

Source: Bloomberg

 Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Wednesday 12 July 2023 

FTSE 100 stabilises ahead of U.S. inflation data

The FTSE 100 managed to stabilise above its March low at 7,204 ahead of today’s key U.S. consumer price inflation (CPI) which is expected to come in at 3.1% in June, following May's 4% year-on-year increase. A rise above Monday’s high at 7,306 would put the 7,331 late March low on the map. Far more significant resistance can be seen between the May and early June lows at 7,401 to 7,433. While this area caps, overall downside pressure should retain the upper hand. A fall through last week’s low at 7,228 would push the 7,204 March low to the fore, below which the October 2022 high and November 2022 low at 7,104 to 7,071 can be seen.

Source: ProRealTime

DAX 40 has seen three days of consecutive gains

Last week’s sell-off to its 3 ½ months low at 15,455 has been followed by three consecutive days of gains for the DAX 40 which is approaching the 15,886 to 15,967 resistance zone ahead of today’s U.S. inflation print. It is where the early June lows and the 55-day simple moving average (SMA) can be seen. Further up a one-month resistance line can be spotted at 16,074. The April-to-July lows at 15,710 to 15,625 should offer support today in case of U.S. inflation remaining stubbornly high or core inflation coming in above its expected 5.0% year-on-year level for June.

Source: ProRealTime

Nasdaq 100 mixed ahead of U.S. CPI release

The Nasdaq 100’s recent decline has been very shallow when compared to other U.S. but especially European stock indices with it slipping to Monday’s low at 14,920. Since then it has risen over two consecutive days ahead of today’s U.S. inflation data and earning’s season kicking off later this week. Immediate resistance can be seen at Friday’s 15,211 high, above which key resistance sits at the 15,281 to 15,283 June and early July highs. If overcome, the December 2021 low at 15,502 would be targeted. Support below the psychological 15,000 mark lies at the 6 and 11 July lows at 14,971 ahead of Monday’s 14,920 trough. If this level were to give way, the late June low at 14,689 would be back in the picture.

Source: ProRealTime

[MongiIG]

Dow, Nikkei 225 and CAC40 rise after US CPI data

Indices worldwide were given a lift by US inflation data yesterday, which showed a slower pace of price growth, easing the pressure on the Fed to raise rates again.

Source: Bloomberg

 

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Thursday 13 July 2023 

Dow looks to break 34,500

The index rallied in the wake of the CPI reading, but was unable to hold on to gains above 34,500. This leaves the range of recent weeks intact, but with risk appetite once again building following the inflation print we could see a close above 34,500. This would mark a bullish development and open the way to 35,000 and the December highs. A reversal below 33,600 would be needed to put the sellers back in charge.

Source: ProRealTime

Nikkei 225 stablises after losses

The pullback continues, with the price finally dropping below the 50-day SMA and closing below it on Wednesday. From here the 31,460 level may be the next area of possible support. The overall uptrend is still arguably intact, though as yet a higher low has yet to form. A recovery above 32,500 would help to bolster the bullish view and potentially open the way to 34,000 again.

Source: ProRealTime

CAC40 continues to gain

A fourth day of gains has seen the index move back above the 50-day and 100-day SMAs. A low has been formed and now the price needs to push on above 7400 to suggest that a more bullish view prevails. This would then bring 7500 and 7590 into view as upside targets. A reversal back below 7200 would be needed to indicate that the sellers are regaining control, which could then see the price test last week’s lows around 7080, and then the 200-day SMA.

Source: ProRealTime

[MongiIG]

Equity rally loses some steam as U.S. earnings season kicks off in earnest

Outlook on FTSE 100, DAX 40 and S&P 500 as the Q2 earnings season kicks off with the likes of JPMorgan, Citigroup, Wells Fargo and Blackrock.

Source: Bloomberg

 Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Friday 14 July 2023 

FTSE 100 stabilises ahead of start of U.S. earnings season

The FTSE 100’s three-consecutive day rise is losing upside momentum ahead of major U.S. earnings results out later today and as it approaches the June-to-July downtrend line at 7,459. If it and Thursday’s high at 7,459 were to be exceeded, the way would be open for the 9 June low, April-to-July downtrend line, 200- and 55-day moving averages at 7,546 to 7,595 to be reached. Minor support can be found at the 7,401 late June low.

Source: ProRealTime

DAX 40 has seen five days of consecutive gains

The DAX 40 has now risen on five consecutive days as U.S. inflation abates and the odds of further Fed rate hikes diminishes and that of a soft landing increases. The early July high at 16,211 is now within reach, a rise above which could lead to the May peak at 16,333 being reached next. Slips should find support along the breached June-to-July downtrend line at 16,036 below which the 55-day simple moving average (SMA) can be spotted at 15,979.

Source: ProRealTime

S&P 500 trades in 16-month highs

Following four consecutive days of rising prices taking the S&P 500 to a new 16-month high, the index may lose some upside momentum on profit taking ahead of the weekend and as JPMorgan, Citigroup, Wells Fargo and global fund titan Blackrock kick off the Q2 earnings season on Friday. Above Thursday’s 4,517 high lies the 8 April 2022 peak at 4,525 and still further up the 4,530 late December 2021 low. Below Thursday’s low at 4,481 sits strong support between the mid- to late June highs at 4,458 to 4,447.

Source: ProRealTime

[MongiIG]

Dow and CAC40 move higher but Nikkei 225 continues to struggle

While the Dow is looking stronger ahead of more bank earnings, and the CAC40 is attempting to recover, the Nikkei is struggling to make headway.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Tuesday 18 July 2023

Dow pushes up ahead of bank earnings

Further gains have taken the price back to 34,500, and a break to a new high for the year could be in the offing. Additional upside from current levels would then target 34,940, 35,493 and then 35,860. This would continue to recoup the losses from the first months of 2022, and mark a more substantial recovery for the index. The recent double-bounce from the 50-day SMA has left the buyers firmly in charge, and a move back below the 50-day would be needed to negate the bullish outlook.

Source: ProRealTime

Nikkei 225 struggles around the 50-day MA

Dips towards 32,000 continue to bring out buyers, and for the moment the pullback has failed to make new lows. Sellers will want to see a daily close below 32,000, something they have been unable to achieve over the past week. This might then point to further declines that will see the price eat into the gains of May. A recovery above 33,000 would add weight to the view that a higher low has been created and that a fresh leg higher in the index’s uptrend has begun. This might then target 33,840 and 34,000.

Source: ProRealTime

CAC40 edges higher

The index has been unable to make headway today, and the drop from trendline resistance is intact. For the moment this leaves the pullback from the April high in play, and could see the price head back to the July low around 7070. Below this the 200-day SMA comes into view as a target. A close above 7400 is needed to suggest that a more bullish view prevails, and that trendline resistance has been broken.

Source: ProRealTime

[MongiIG]

Stock indices, except the FTSE 100, consolidate ahead of weekend

Outlook on FTSE 100, DAX 40 and S&P 500 amid mixed U.S. earnings and strong UK retail sales.

Source: Bloomberg

 

 

 Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Friday 21 July 2023 

FTSE 100 approaches key resistance

The FTSE 100’s rally, triggered by weaker-than-expected UK inflation, is being boosted by June retail sales which came in at 0.7% versus an expected 0.2% and a downwardly revised 0.1% in May. The UK blue-chip index, which has so far risen by over 5% from its July low, is fast approaching its 7,679 to 7,688 resistance zone. It consists of the mid-May low and the mid-June high and as such may short-term cap. If not, the way would be open for the 7,806 mid-May high to be reached next. Support is seen along the 200- and 55-day simple moving averages (SMA) at 7,599 and 7,573 as well as along the breached April-to-July downtrend line at 7,552.

Source: ProRealTime

DAX 40 stays below key resistance area

The DAX 40 this week has only briefly managed to rise above its 16,187 to 16,221 previous July highs, to 16,240, before continuing to sideways trade amid mixed earnings. If this week’s high at 16,240 were to be bettered, however, the May peak at 16,333 would be next in line. Immediate support can be spotted at Thursday’s 16,047 low and also between the 55-day simple moving average (SMA) and Monday’s low at 15,994.

Source: ProRealTime

S&P 500 comes off its 16-month highs

Mixed corporate earnings provoked some profit-taking on the S&P 500 and have taken the index away from its 16-month high. Were this week’s high at 4,578 to be exceeded, however, the late January 2022 high at 4,595 and the March 2022 peak at 4,637 may be reached as well. Minor support below Thursday’s low at 4,528 can be seen around Monday’s low at 4,498.

Source: ProRealTime

[MongiIG]

FTSE 100 & Dow hold up well after gains, while Dax remains in consolidation mode

The FTSE 100 and Dow have started the week well after their recent surges, while the Dax is still moving sideways.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Monday 24 July 2023 

FTSE 100 steady after recent rebound

The surge of the past two weeks has carried the index to its highest level since late May. The price rallied above the 100-day SMA on Friday, and after gaining around 400 points it is perhaps not surprising to see some weakness enter the picture. Nonetheless, this looks more like consolidation at present. The key battleground will be the 7700 area. This was support in early May and resistance in June, so a close above 7700 would mark a fresh bullish development. From here the index might then move on to 7800 and then on towards the April highs around 7900. A move back below 7550 and the 50-day SMA would be needed to dent the bullish view, and a close back below downtrend resistance from the April highs would put the sellers back in charge.

Source: ProRealTime

DAX aiming for another attempt to break 16,200

Consolidation continue to be the theme here, after the recovery from the early July lows. Upside progress has stalled around 16,200, though the index remains close to its record highs near 16,400. This is the first destination in any move higher, with further gains then taking the index into fresh uncharted territory. A close back below 16,000 might suggest another drop back towards the all-important 15,700 support level.

Source: ProRealTime

Dow holding firm around 2023 highs

Over the past two weeks the index has finally found the strength to move to the upside, rallying to its highest level since April 2022. The next two weeks are packed with earnings updates, economic data and central bank decisions. This may militate against any further upside in the short-term, but further gains might target the February 2022 high at 35,860, and then on towards 36,465, the November 2021 peak. Consolidation may develop from here as the market digests all the news expected over the coming two weeks. Some support might be expected around 34,500, which was previously resistance in February and June.

Source: ProRealTime

[MongiIG]

Nasdaq 100, Nikkei 225 and CAC40 aim for further gains

The Nasdaq 100 is edging higher ahead of tech earnings tonight, and the Nikkei is up on hopes of China stimulus. Meanwhile, the CAC40 breakout continues.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Tuesday 25 July 2023 

Nasdaq 100 sees buyers step in

Shallow pullbacks continue to be the norm for this index, and already buyers are stepping in after the losses on Wednesday and Thursday last week. For now the 15,400 level has been firmly defended, and further gains will target last week’s highs around 15,930. Above this a fresh higher high for this relentless uptrend will have been created. Sellers will want a reversal back below 15,400 that can potentially open the way to the 50-day SMA and the 14,900 level that marked support earlier in July.

Source: ProRealTiime

Nikkei 225 recovery goes on

The index continues to carve out a rounded bottom, with the latest reports of further support for the Chinese economy helping to lift spirits. Gains above 33,000 have proven impossible to sustain over the course of July, but buyers have repeatedly stepped in around 32,000, stalling any deeper pullback from the June highs. Above 33,000 a move back to the June highs seems to beckon. A daily close below 32,000 is needed to provide an indication that a deeper pullback is at hand, perhaps towards the 100-day SMA.

Source: ProRealTiime

CAC40 breakout continues

The index continues to make headway above trendline resistance from the April highs. The breakout of the past week continues to reinforce the bullish view. The next target will be the May lower high at 7500, and then on to April’s peak at 7580. Above this the price will move to a new higher high and fresh record highs. A move back below 7300 would be needed to suggest that the sellers are back in control in the short-term, although the overall move higher remains in place.

Source: ProRealTiime

[MongiIG]

S&P 500 and Nasdaq 100 make gains, while CAC40 struggles

US indices have made headway after the Fed decision, but today’s ECB meeting has kept the CAC40 in check.

Source:Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Thursday 27 July 2023 

S&P 500 hits new 2023 high

The index has surged to a new high for the year, and its highest level since April 2022. The Fed decision last night gave space for the dollar to weaken and equities to rally, and the S&P 500 rallied off its lows to clear 4580. Further gains now target the March 2022 high at 4631, while beyond this January’s high at 4730 and then the record high at 4817 come into view.

While the price may look overextended in the short-term, so far there is little sign of any substantive turn lower. For this to happen we would need a drop back below 4500, and then a move to the 4400 support level or the 50-day SMA might come into view.

Source: ProRealTime

Nasdaq 100 resumes its move higher

A similar picture prevails for the Nasdaq 100, although it remains below is recent highs for the time being. Last week’s high at 15,932 is the next target to watch, while beyond this, the mid-January high at 16,021 comes into view. After this, the final hurdle for now becomes the record highs of November and December around 16,630 (and November’s intraday record high of 16,769).

The index continues to defy all expectations of a turn lower, although more tech earnings will arrive over the next week. The most recent drop fizzled out after two days, which in itself should send a warning to sellers that there is still plenty of bulls willing to step in after the slightest weakness.

The price remains solidly above the 50-day SMA, and for now shows no inclination to head lower. Trendline support from the April low and then the 50-day SMA are close by in the event of a pullback.

Source: ProRealTime

CAC40 mixed ahead of ECB decision

The index hit a two-week low yesterday, but rallied into the Fed decision and beyond. Unsurprisingly, some of that enthusiasm has ebbed as investors contemplate the ECB meeting today. The price has failed to hold its overnight highs, and is struggling to hold above trendline resistance from the April high. Bears will want to see a close below 7290, which might come about from a more hawkish ECB meeting.

Alternately, more gains would come about through a move to 7450, with a close above this level reinforcing the bullish outlook. This would bring 7500 and then the April high at 7584 into play.

Source: ProRealTime

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DAX hits new intraday record, while Dow edges higher and Nikkei holds on after BoJ decision

The DAX rallied to a fresh intraday high yesterday, while the Dow is moving up once more. The Nikkei rallied off its lows after the mixed signals created by the BoJ’s latest policy decision.

Source: Bloomberg

 

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Friday 28 July 2023 

DAX surges to new intraday high

The index was given fresh strength by a dovish ECB meeting yesterday. European indices enjoyed a solid session, which may well have given them the strength to move higher over the medium term. It seems the index’s consolidation may have come to an end, and a move into new record high territory could develop. Sellers will want to see a close back below 16,000 to put the price below Wednesday’s low and also under the 50-day SMA. This could then open the way to 15,7000 or the July low at 15,500.

Source: ProRealTime

Dow edges up after losses

The index’s rally appears to have run its course for now, as the price drops back below 35,500. Admittedly losses have been slight, and the index remains where it was some two days ago. This has yet to turn into a much deeper pullback, and looks more like consolidation. A bugger pullback below 35,000 could see the 34,500 highs tested as possible support. A revival above 35,500 could see the price move to the February 2022 highs at 35,861, and then on to 36,465 and the record high at 36,954.

Source: ProRealTime

Nikkei 225 steady despite BoJ developments

The price was knocked back by the Bank of Japan meeting and by the comments that preceded it yesterday regarding tweaks to its monetary policy. The price dropped back to 32,070, and area that has held all month has support. This actually appears to have strengthened the bullish thesis, since the price has recovered and moved back to the 50-day SMA.

A close above this and then above 33,070, which has held back gains this month, would bolster expectations of further upside, targeting trendline resistance from the June peak. A close below 32,000 is needed to hand the bears the advantage in the short-term, indicating a deeper retracement towards the 100-day SMA is possible. This would still leave the uptrend intact however.

Source: ProRealTime

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FTSE 100, DAX and Dow look for further gains

Indices enjoyed a strong few days last week, with both the Dax and Dow reaching new highs for the year, while the FTSE 100 closed in on 7700 once more.

Source: Bloomberg

 

 

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Monday 31 July 2023 

FTSE 100 targets 7700 again

Gains stalled last week below 7700, after an impressive run higher for the index. Bulls will want to see a daily close above 7700 in order to open the way to more upside in the direction of 7800 and then 7930. A recovery of these two levels helps to revive a bullish view after the losses of May and June. So far losses have been contained around 7630 so a close below this level might help to reinforce a short-term bearish view.

Source:ProRealTime

DAX at new 2023 high

The index succeeded in hitting a new record closing high, after months of consolidation. This now puts the buyers back in charge, so long as the price holds above 16,000. After recovering from the lows of June a more bullish view prevails. A close back below 16,100 would suggest the consolidation would continue. It would need a move back below 15,700 to suggest that a near-term bearish view prevails.

Source:ProRealTime

Dow holds close to 2023 high

Last week saw the index reach a new high for the year, both intraday and on a closing basis. After bottoming out in March, the index has succeeded in creating higher lows in May and July. The last three weeks has seen the index rally by over 1500 points, bouncing off the 50-day SMA.

The next levels to watch become the February 2022 high at 35,860, and then on to 36,465 and then the record high at 36,954. A pullback could target the 50-day SMA if the 50-day SMA is lost.

Source:ProRealTime

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Stock indices steady as PBOC reduces its 1-year loan prime rate to a record low

Outlook on FTSE 100, CAC 40 and Nasdaq 100 as the People’s Bank of China seeks to strike a balance between helping the faltering Chinese economy and stemming further weakness in the yuan.

Source: Bloomberg

 Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Monday 21 August 2023 

FTSE 100 stabilises at support

Following six consecutive days of falling prices, the FTSE 100 managed to find support between its March and July lows at 7,216 last week and is little changed on Monday morning as the economic calendar is empty. Asian stock indices also didn’t provide much direction despite the People’s Bank of China (PBOC) having eased its monetary policy on its 1-year loan prime rate to a record low of 3.45%.

The 10 basis-point (bp) cut was less than the 15 bp cut traders had hoped for and together with the unexpectedly unchanged 5-year rate at 4.20% painted a mixed picture for stocks. The UK blue-chip index is expected to trade in a low volatility trading range above its 7,228 to 7,204 major support zone on Monday. Minor resistance can be found at the 24 March low at 7,331 and more significant resistance between the May and June lows at 7,401 to 7,433.

Source: ProRealTime

CAC 40’s trades back around the 200-day simple moving average

Last week the rout in the French CAC 40 index nearly reached the May to July lows at 7,083 to 7,053 before rising back above its 200-day simple moving average (SMA) at 7,149 on China growth concerns, US yields rising to 2008 levels and as China's Evergrande filed for bankruptcy protection in New York. On Monday further sideways trading around the 200-day SMA remains at hand with the June low at 7,105 offering minor support. Resistance can be found between the early August lows at 7,210 to 7,218.

Source: ProRealTime

Nasdaq 100 stabilises above last week’s two-month low

The Nasdaq 100’s summer decline amid rising longer dated US yields last week took it to a fresh two-month low at 14,554 before levelling out ahead of this week’s Jackson Hole symposium which will take place from Thursday until Saturday. Last week’s trough at 14,554 and the 14,530 late May high continue to offer support while minor resistance can be spotted at the July low at 14,920.

Source: ProRealTime

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Stock indices rally as Nvidia reports stellar results

Outlook on FTSE 100, CAC 40 and Nasdaq 100 ahead of today’s Jackson Hole symposium.

Source: Bloomberg

 Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Thursday 24 August 2023 

FTSE 100 benefits from risk-on appetite

The FTSE 100 is on track for a second day of gains as it follows Asian stock indices higher ahead of today’s start of the Jackson Hole symposium. The UK blue chip index is now gunning for the May, June and early August lows at 7,401 to 7,437 which may cap it today, though. If not, the mid-July high at 7,481 could be reached as well ahead of the 55-day simple moving average (SMA) at 7,501. Slips should find support around Monday’s high at 7,317.

Source: ProRealTime

CAC 40 on track for fifth consecutive day of gains

The French CAC 40 index’s advance on general stock market optimism is on track for its fifth consecutive day of gains, fuelled by stellar Nvidia overnight results. With the 55-day simple moving average (SMA) at 7,305 having been exceeded, the July-to-August downtrend line at 7,389 and also the mid-June peak at 7,405 are next in line. Support below the 55-day SMA can be spotted at the late July low at 7,251.

Source: ProRealTime

Nasdaq 100 surges higher on AI driven exceptional Nvidia results

The Nasdaq 100’s summer correction has most likely run its course with the index having risen above its 55-day simple moving average (SMA) at 15,203 in after-hours trading following Nvidia’s stellar results and $25 billion buy back.

The late July low at 15,372 is within reach but may offer short-term resistance. If overcome on a weekly chart closing basis, the July peak at 15,932 will be back in focus. Minor support below the 55-day SMA sits between Tuesday’s high at 15,066 and the minor psychological 15,000 mark.

Source: ProRealTime

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Stock indices give back gains ahead of Fed Chair speech

Outlook on FTSE 100, DAX 40 and S&P 500 ahead of today’s Jackson Hole symposium Jerome Powell speech.

Source: Bloomberg

 Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Friday 25 August 2023 

FTSE 100 on track for first week of gains in a month

The FTSE 100 is on track to end the week up for the first time in a month as UK GfK consumer confidence came in at a better-than-expected -25 in August compared to -30 in the previous month. While Thursday’s low at 7,310 underpins, Thursday’s high at 7,385 may be revisited. If overcome, the May, June and early August lows at 7,401 to 7,437 would be in focus.

Further up the mid-July high can be made out at 7,481, the one-month resistance line at 7,490 and the 55-day simple moving average (SMA) at 7,495. Minor support below 7,310 can be found between Monday and Wednesday’s lows at 7,262 to 7,251 and major support in the 7,228 to 7,204 region. It consists of the March, July and current August lows.

Source: ProRealTime

DAX 40 gives back this week’s entire gains

The DAX 40’s swift reversal lower on Thursday negated all of this week’s gains as traders took money off the table following strong Nvidia earnings. They did so ahead of Jerome Powell’s speech at Jackson Hole today in which he is expected to reiterate the Federal Reserve’s (Fed) hawkish stance.

Were he to do so, the DAX could slip back to its July and current August lows at 15,469 to 15,455 with the 200-day simple moving average (SMA) at 15,439 representing a possible downside target. Minor resistance above the 16,625 to 15,659 early and late May lows can be spotted at the 8 August low at 15,704.

Source: ProRealTime

S&P 500 remains in a medium-term bearish trend

Thursday’s Bearish Engulfing pattern on the S&P 500 does not bode well for the bulls as it points to a retest of the June and mid-August lows at 4,337 to 4,328 were Thursday’s low at 4,369 to give way. This may well happen if Fed Chair Jerome Powell’s speech at the Jackson Hole symposium were to allude to a “higher rates for longer” scenario.

Thursday’s high at 4,474 would need to be exceeded for the S&P 500 to form a bottom. At present such a bullish reversal looks unlikely to take place this week.

Source: ProRealTime

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Stock indices track Asia higher

Outlook on FTSE 100, DAX 40 and S&P 500 ahead of today’s U.S. consumer confidence and job openings data.

Source: Bloomberg

 Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Tuesday 29 August 2023 

FTSE 100 probes downtrend line

The FTSE 100 is trying to break through its July-to-August downtrend line following a prolonged Bank Holiday weekend in the UK during which Chinese authorities cut share dealing stamp duty by 50%. The 55-day simple moving average (SMA) at 7,490 represents the next upside target ahead of the minor psychological 7,500 mark. The May, June and early August lows at 7,437 to 7,401 should now offer good support.

Source: ProRealTime

DAX 40 probes last week’s high

The DAX 40 is revisiting last week’s high at 15,895 on a globally slightly more positive outlook regarding rates following last week’s Jackson Hole symposium and weaker economic data. If 15,895 were to be exceeded despite German consumer morale unexpectedly falling, the 55-day simple moving average (SMA) at 15,973 would be eyed ahead of the 10 August high at 16,062.

This high would need to be exceeded, for a medium-term bullish reversal to be confirmed. Potential slips should find support along the breached one-month resistance line, now because of inverse polarity a support line, at 15,792.

Source: ProRealTime

S&P 500 approaches its July-to-August downtrend line

The S&P 500 is still in the process of regaining last Thursday’s sharp losses and nears resistance which sits between the July-to-August downtrend line and the 55-day simple moving average (SMA) at 4,453 to 4,457. It does so as investors look ahead to today’s U.S. consumer confidence and job openings data.

The next higher high at 4,474, seen last week, would need to be exceeded for a bullish reversal to gain traction and put the July peak at 4,607 back on the map. Minor support can be found at the 4,378 July low. Further down lies major support between the June and mid-August lows at 4,337 to 4,328.

Source: ProRealTime

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Stocks resume their bullish run

Outlook on FTSE 100, Dow and Nasdaq 100 as hopes of the Fed moving away from its tightening path grow.

Source: Bloomberg

 Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Wednesday 30 August 2023 

FTSE 100 has broken through its downtrend line

The FTSE 100 has now broken through its July-to-August downtrend line, tracking Wall Street higher following weak US job opening data which shows that the US economy may be cooling, fuelling hopes that the Fed might stop raising rates.

The 55-day simple moving average (SMA) at 7,489 is currently being tested with the minor psychological 7,500 mark remaining in sight ahead of the 10 August high at 7,624. Minor support can now be found along the breached July-to-August downtrend line at 7,450 ahead of the May, June and early August lows at 7,437 to 7,401.

Source: ProRealTime

The Dow Jones Industrial Average continues its long-term uptrend

The Dow Jones Industrial Average’s rise and daily chart close above last week’s high at 34,696 points towards the August corrective phase lower having ended with the July peak at 35,690 being back in sight.

The first upside target is the minor psychological 35,000 region. Slips should find support between last week’s high and the 55-day simple moving average (SMA) at 34,696 to 34,658. Key support remains to be seen between the October-to-August uptrend line at 34,100 and the late June low at 33,605. While it underpins, the bullish long-term trend remains intact.

Source: ProRealTime

Nasdaq 100 confirms bottoming formation with long-term uptrend to continue

The Nasdaq 100’s summer correction has most likely run its course with the index now having risen and closed above last week’s high at 15,369 on Tuesday. Therefore, while the August trough at 14,554 underpins, the July peak at 15,932 will remain in focus.

Minor support below last week’s high at 15,369 comes in along the 55-day simple moving average (SMA) at 15,221. Minor support below the 55-day SMA sits between last Tuesday’s high at 15,066 and the minor psychological 15,000 mark.

Source: ProRealTime

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DAX, S&P 500 and CAC40 see further strength in early trading

Indices have seen further gains this morning, building on the recovery seen over the past week.

Source:Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Thursday 31 August 2023 

DAX sees further strength

After rallying to the 50-day SMA earlier in the week, the index fell back yesterday as the euro strengthened and expectations of a fresh ECB rate hike September rose. The bounce from last week’s lows and the 15,500 level now needs to push back above 16,000 in order to open the way to further upside. An initial target would be the late July highs at 16,500.

Beyond this, the index would be in new record high territory. A reversal back below 15,700 could suggest that sellers will be able to engineer a retest of 15,500, or even the 200-day SMA.

Source: ProRealTime

S&P 500 in rally mode into month-end

While Wednesday failed to match the solid gains of Tuesday, the additional upside did help to solidify the bullish move, with a higher low having been created over the past two weeks. Having seen the price close back above the 50-day SMA, the next target becomes the highs of July around 4600.

The bullish view has been supported by the MACD crossover this week, the first since early July, a sign that momentum has shifted back to the buyers for the time being. The buyers remain in control for now, and it would take a move back below 4400 to suggest that the recent low may be tested once more.

Source: ProRealTime

CAC40 edges up

After hitting a new record high in April the index has seen a more muted performance. However, repeated dips to 7100 found buyers, helping to stem any looming bearish ivew. The latest bounce from mid-August has seen the index rally from below the 200-day SMA, and then move on back above the 50- and 100-day SMAs.

Further upside from here would see the index push into the 7500 area that stifled progress in late July and early August. Above this, the highs of April at 7587 come into view. A close back below 7300 would weaken the bullish case, and suggest another test of the 200-day SMA is likely, along with the 7100 support zone.

Source: ProRealTime

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FTSE 100, DAX 40 and CAC 40 track Asia higher while US is shut for Labor Day

FTSE 100, DAX 40 and CAC 40 face quiet day ahead as US is shut for Labor Day.

Source: Bloomberg

 Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Monday 04 September 2023 11:41

FTSE 100 begins week on a positive note

The FTSE 100 extends its gains following a positive session in Asia on growing expectations that the Federal Reserve (Fed) won’t continue to hike its rates. The UK blue chip index is expected to overcome last week’s high at 7,510 with the 10 August high and 200-day simple moving average (SMA) at 7,624 to 7,641 representing the next technical upside targets for the days and weeks to come.

This bullish scenario will remain intact as long as Thursday’s low at 7,419 underpins on a daily chart closing basis. Support above this low can be seen along the one-month uptrend line at 7,455. Intraday support can be found slightly higher up along the 55-day simple moving average (SMA) at 7,481.

Source: ProRealTime

DAX 40 expected to regain Friday’s losses

The DAX 40, despite its second consecutive weekly close in the green, declined last week following last week’s European and US cooling employment data. While Friday’s low at 15,824 holds on a daily chart closing basis, the 55-day simple moving average (SMA) at 15,947 is to be revisited. Above it beckon last week’s high at 16,044 and the 10 August high at 16,062.

These highs need to be exceeded for a medium-term bullish reversal to occur. Minor support comes in at the 24 August 15,895 high and more significant support between Friday’s and Wednesday’s lows at 15,824 to 15,821. Further support comes in along the breached one-month resistance line, now because of inverse polarity a support line, at 15,650.

Source: ProRealTime

CAC 40 recovers from last few days’ of losses

The CAC 40 will likely attempt to break last week’s three-day losing streak whilst tracking Asian stock indices higher. These got a boost as hopes of more China stimulus, this time a relaxation on restrictions in buying property, lifted the Hang Seng and other markets in Asia. Trading will probably be light, though, as the US will be shut for Labor Day.

While the 55-day simple moving average (SMA) at 7,307 holds, the 24 August high at 7,345 may be revisited ahead of the August-to-September downtrend line at 7,392. For this short-term bullish scenario to play out, Friday’s low at 7,286 will need to hold, though. Should it not, the late July low at 7,251 may be revisited.

Source: ProRealTime

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US futures mixed while Nikkei 225 remains in uptrend

US cash markets return from their long weekend and are quiet so far. Meanwhile, the Nikkei’s advance continues.

Source:Bloomberg

 

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Tuesday 05 September 2023 

Dow steady above 50-day MA

US markets return from their break, with the Dow’s bounce having stalled since last week. Friday’s session witnessed the index attempting to push higher but running out of momentum.

So far it is holding above the 50-day SMA, but a close below 34,700 might prompt a deeper reversal, towards the 100-day SMA. Bulls will want to see a close back above 35,000 to provide some positive short-term momentum and to open the way to the July highs.

Source: ProRealTime

Nasdaq 100 drifts lower in early trading

Gains have also stalled for this index, though the uptrend remains firmly intact. Additional upside targets the late July high at 15,760, and then on to the mid-July high at 15,925.

Beyond this the next major level is the record high at 16,630 from the end of 2021. For the moment the buyers still have the upper hand, but a close back below the 50-day SMA might signal a pullback towards the August low at 14,670.

Source: ProRealTime

Nikkei 225 sitting just below 33,000

Japanese stocks continue to show strength, continuing to push higher despite the US holiday yesterday. Initial gains target the late July high at 33,430, with a close above here helping to solidify the view that the pullback from the June high has run its course. A move back below 32,400 might indicate that the sellers have reasserted control.

Source: ProRealTime

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Dow, Nasdaq 100 and CAC40 all come under selling pressure

Indices have seen bullish momentum slip away, as concerns about renewed rate hikes hit risk appetite.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Thursday 07 September 2023 

Dow gives back recent gains

The index has fallen this week, dropping back below the 50-day SMA and heading towards the 100-day SMA. It remains above the August lows, but bulls will need a close back above 34,750 to suggest that a new leg higher has begun, which might then see the index target 35,000, followed up by the late July peak at 35,640. 34,000 marked the low of August, so a close below this level would add to the bearish short-term view and bring the 200-day SMA into play, followed up by the June and early July low around 33,630.

Source: ProRealTime

Nasdaq 100 comes under pressure

The Nasdaq 100 saw some weakness on Wednesday, and this has continued into Thursday. In the event that these losses extend into a more sustained pullback, the price may retest the August low around 14,688, which would also see it test the 100-day SMA. Buyers will want to see a move back above 15,400, with a close back above 15,500 signalling fresh bullish momentum, with an initial target of the July highs around 15,900.

Source: ProRealTime

CAC40 back at 200-day moving average

European indices have given back ground over the past week, with the CAC40 surrendering most of the gains made in the second half of August. The price finds itself testing the 200-day SMA once more, as it did a month ago. If it can repeat the August feat and stage a recovery, then the 7400 level becomes an initial target. Continued losses bring the price into the area around 7100, which has acted as support since late May.

Source:ProRealTime

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Nikkei 225 under pressure on hawkish BoJ but FTSE 100, DAX 40 positive

Outlook on FTSE 100, DAX 40 and Nikkei amid improving sentiment on hopes of soft US landing.

Source: Bloomberg

 

 Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Monday 11 September 2023 

FTSE 100 still tries to push ahead

Last week the FTSE 100 outperformed its European and US counterparts by ending the week up 0.2% and not in the red like the others as the index benefitted from the rise in oil and gas prices. The UK blue chip index is seen breaking through its July-to-September downtrend line at 7,485, attacking the early September high at 7,524.

Further up the early July peak can be spotted at 7,532 ahead of the 200-day simple moving average (SMA) at 7,638. Minor support can be seen along the 55-day simple moving average (SMA) at 7,475 and also at the 7,437 early August low as well as the 7,419 late August low.

Source: ProRealTime

DAX 40 to open up after dismal week

The DAX 40 dropped 1.2% last week as Euro Zone growth worries, a rising US dollar and yields pushed the index to a two-week low at 15,575 before stabilizing on Friday. While last week’s low at 15,575 holds on a daily chart closing basis, the 24 August high and July-to-September downtrend line at 15,895 may be revisited.

This scenario would become more likely if today’s daily chart close were to be made above Friday’s 15,787 daily candlestick “Hammer” high which would trigger a bullish technical reversal signal. Slightly further up meanders the 55-day simple moving average (SMA) at 15,927. Were last week’s low at 15,575 to be fallen through on a daily chart closing basis, though, the 200-day SMA and August low at 15,514 to 15,469 would be back in sight.

Source: ProRealTime

Nikkei 225

Following last week’s slide in line with other major global stock indices on worsening sentiment, the Nikkei 225 also began this week on a weaker footing. The index dropped by half a percentage point as the governor of the Bank of Japan (BoJ) Kazuo Ueda signaled that the negative rates policy could be ended by the start of 2024 if wage inflation were to persist.

The Nikkei 225 touched the 55-day simple moving average (SMA) at 32,411.9 which so far acted as interim support. Below it the August-to-September tentative uptrend line can be found at 32,294.0 which would be expected to hold, though. A rise above Monday’s 32,759.0 intraday high is needed for at least a minor bottom to be formed.

Source: ProRealTime