Article by IG Senior Market Analyst Axel Rudolph

FTSE 100, DAX 40, Nasdaq 100 Analysis and Charts

FTSE 100 tries to begin the week on a positive footing

The FTSE 100 has come off Thursday’s 7,466 high amid hawkish comments by the US Federal Reserve (Fed) Chair Jerome Powell and as the British economy stalled in the third quarter and slid to 7,320 on Friday before recovering.

A rise above Friday’s 7,422 high would engage the one-month resistance line at 7,434 ahead of last week’s high at 7,466 and the early November high and 55-day simple moving average at 7,484 to 7,502. If overcome, the 200-day simple moving average (SMA) at 7,610 would be back in the picture.

Minor support below Monday’s intraday low at 7,359 is seen at Friday’s 7,320 low. In case of it being slipped through, a fall toward the October low at 7,258 may ensue. The 7,258 low was made close to the 7,228 to 7,204 March-to-August lows which represents significant support.

FTSE 100 Daily Chart

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DAX 40 remains immediately bid while above 15,171

The DAX 40’s rally from its 14,589 October low took it to last week’s high at 15,366 before slipping to Friday’s low at 15,171. While remaining above this level, further upside should be in store with the July-to-November downtrend line and 55-day simple moving average (SMA) at 15,342 representing the first upside target ahead of the 15,366 high. Were it to be exceeded, the 15,455 to 15,575 July-to-mid-September lows and the mid-October high would represent major resistance.

Support below the October-to-November uptrend line at 15,227 and Friday’s 15,171 low can be found at last week’s 15,067 low. Further down lie the minor psychological 15,000 mark and the early October low at 14,944.

DAX 40 Daily Chart

Nasdaq 100 grapples with resistance

The Nasdaq 100 surged ahead on Friday and reached levels last traded in September between the 15,520 to 15,628 early to mid-September highs by rising to 15,543.

Moody’s downgrade on the US credit rating from “stable” to “negative” while affirming its Aaa rating - the highest investment grade - put a dampener on US stock indices such as the Nasdaq 100 which is trading slightly lower in pre-open trading and ahead of Tuesday’s inflation data.

Support comes in around the 15,339 October peak. While the next lower 15,139 Thursday low underpins, the steep upside momentum from the last couple of weeks remains in play.

Nasdaq 100 Daily Chart

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