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Indices outlook: FTSE 100, DAX 40, NASDAQ 100 lack direction

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The FTSE 100, DAX 40 and Nasdaq 100 remain bid but are so far being capped by resistance over worries of the impact further sanctions on Russia might have on the outlook for European economies.


FTSE 100 range trades below its 7,593 late March high

The FTSE 100 continues to trade around its 25 February high at 7,564 but below its late March high at 7,593 as traders mull the prospect of further sanctions against Russia.

Nonetheless the trend continues to point upwards and a rise above last week’s high at 7,593 would target the February peak at 7,688.

Minor support remains to be seen at the 23 March high at 7,522 below which sits the 31 March low at 7,489.

While above there, immediate upside pressure should be maintained. Below 7,489 meanders the 55-day simple moving average (SMA) at 7,436 and further down the 23 March low can be made out at 7,419.

05042022_UKX-Daily.pngSource: ProRealTime

DAX 40 remains below key resistance area

The DAX 40 tried but so far failed to reach the 55-day SMA at 14,667 amid worries of further sanctions being imposed on Russia and the impact these may have on European economies.

The index thus remains below key multi-year resistance at 14,840 to 14,917 which goes back to May 2021. At present a slide back towards the last week’s low at 14,323 looks to be on the cards. If slipped through, the 24 March low at 14,187 may be revisited.

In case of the March high at 14,927 being exceeded, the 200-day SMA at 15,406 would be in focus, however.

05042022_DAX-Daily.pngSource: ProRealTime

Nasdaq 100 flirts with 200-day SMA at 15,172

US stock futures started the week on the front foot thanks to news that the Chinese regulator would make changes to rules regarding confidentiality, allowing US auditors to access sensitive financial information. This prompted a surge in technology stocks and led to the Nasdaq 100 resuming its ascent.

The index is currently grappling with the 200-day SMA, mid-January low and February high at 15,172 to 15,276 which capped last week.

If 15,276 were to be overcome on a daily chart closing basis, a double bottom upside target of 15,845 could be reached. It is the distance between the 14,395 early March high to the 12,945 March low, projected upwards from the breakout point at 14,395.

Only a currently unexpected slip through Friday’s low at 14,723 would negate the currently bullish bias and may provoke a deeper retracement back towards the 55-day SMA at 14,328.

05042022_NASDAQ-Daily.pngSource: ProRealTime

IG Analyst
05 April 2022 22:30
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