Article by IG Senior Market Analyst Axel Rudolph
FTSE 100, DAX 40, Nasdaq 100 Evaluation and Charts
FTSE 100 consolidates beneath its 3 ½ month excessive
Final week the FTSE 100 had its greatest week in 9 months because it rose by over 3%, buoyed by the rising oil worth and mining shares after China reduce its reserve necessities for the second time in 2023. The UK blue chip index is anticipated to at the very least short-term consolidate beneath its 3 ½ month excessive at 7,747 as UK rental costs surge to multi-year highs whereas home costs stagnate and as merchants await Thursday’s Financial institution of England (BoE) price choice.
A slip again to the 7,688 to 7,679 mid-Could low and mid-June excessive thus appears to be like possible with the 200-day easy shifting common (SMA) at 7,642 probably being reached as properly.Minor resistance might be noticed across the 7,723 July peak and eventually week’s 7,747 excessive. If bettered, the psychological 7,800 mark and the 7,817 8 Could excessive could possibly be in focus.
FTSE 100 Day by day Chart
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DAX 40 continues to vary commerce
The DAX 40 rallied final week because the European Central Financial institution (ECB) raised its deposit price to 4% while asserting that it wasn’t planning any extra price hikes because it was decreasing its Eurozone progress forecasts for the years to return.The German inventory index rose above its 55-day easy shifting common (SMA) at 15,907 and reached a excessive at 15,992 on Friday earlier than slipping again in direction of its open. The shifting common acts as a resistance line on Monday morning.
Minor assist beneath the 55-day SMA at 15,907 might be discovered eventually Monday’s 15,871 excessive forward of the 7 September excessive at 15,797. Additional minor assist sits on the 15,739 excessive seen final Wednesday. Solely an increase above final week’s excessive at 15,992 would have interaction the August peak at 16,044. It must be overcome for a medium-term bottoming formation to be confirmed. On this case, an increase again towards the July excessive at 16,532 could unfold till year-end.
DAX 40 Day by day Chart
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| Change in | Longs | Shorts | OI |
| Day by day | 43% | 9% | 18% |
| Weekly | -17% | 11% | 0% |
Nasdaq 100 is seen topping out
The Nasdaq 100 dropped by 1.75% on Friday, bringing the index again down in direction of its earlier week’s low at 15,135 as US shopper sentiment fell greater than anticipated and US import costs rose probably the most in over a yr, re-igniting inflationary fears.
Have been the 15,135 low to be slipped by way of, the March-to-September uptrend line at 15,125 could act as assist. If not, a drop again in direction of the late June and August lows at 14,689 to 14,554 may ensue. Resistance is available in alongside the 55-day easy shifting common (SMA) at 15,312 and at Thursday’s 15,332 low.
For a bullish reversal to be seen, an increase and each day chart shut above final week’s excessive at 15,520 would want to happen. Barely above it lies the early September excessive at 15,628.
Nasdaq 100 Day by day Chart
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