FTSE 100, DAX 40, and Nasdaq 100 Maintain Positions Above Last Week's Lows
The FTSE 100 shows continued declines amid adjusted rate cut expectations, approaching January lows between 7,648 and 7,641.
NEWS
1/12/20242 min read
FTSE 100, DAX 40, and Nasdaq 100 Maintain Positions Above Last Week's Lows
Introduction:
In this analysis by IG Senior Market Analyst Axel Rudolph, we explore the current status of major indicesโFTSE 100, DAX 40, and Nasdaq 100. The markets face various factors, including rate cut expectations, geopolitical tensions, and economic indicators. Let's delve into the charts to understand potential scenarios.
FTSE 100: Nearing January Lows with Potential Support
The FTSE 100 shows continued declines amid adjusted rate cut expectations, approaching January lows between 7,648 and 7,641. These levels could offer support, but a revisit to Monday's intraday high at 7,696 is possible. Exceeding this level may bring the mid-December high at 7,725 into focus. However, downside pressure persists if the 7,648 to 7,641 support zone is breached, potentially leading to the mid-October low at 7,584, accompanied by the 200-day simple moving average (SMA) at 7,575.
DAX 40: Seeking Stability After Initial Slide
The DAX 40 index faced an initial slide to 16,444 after Eurozone's inflation data and stronger-than-expected US nonfarm payrolls. Despite recovering, it seeks stability. To form an interim bottom, the DAX 40 needs to surpass Friday's Dragonfly Doji high at 16,648. This could pave the way for recent highs at 16,809 to 16,812, with potential focus on the December record high at 17,003. Support is evident at 16,500 to 16,477, followed by last week's low at 16,444.
Nasdaq 100: Hovering Above Recent Lows
The Nasdaq 100 faced a decline at the start of the year, primarily influenced by lowered rate cut expectations and geopolitical tensions. Hovering above last week's low at 16,178, the index may find support near the 22 and 29 November highs at 16,167 to 16,126. To gain bullish momentum, a rise above Friday's high at 16,420 is crucial, potentially bringing the 20 December low at 16,552 back into sight.
Conclusion:
While these indices navigate various challenges, including economic data and geopolitical events, the charts provide insights into potential support levels and resistance zones. Traders should remain vigilant for key levels mentioned in each analysis, as they could influence the market trajectory in the coming days.