FTSE 100, DAX 40 remain bid while Nasdaq 100 continues to slide
Outlook on FTSE 100, DAX 40 and Nasdaq 100 ahead of US NFP data release.
FTSE 100 rallies to 10-month high within key resistance zone
The FTSE 100, the best performing major Western equity index in 2022 which managed to end last year on a slightly positive note, now trades in 10-month highs as positive risk sentiment prevails.
The index is currently probing its major 2022 resistance zone at 7,649 to 7,690, consisting of the February-to-May 2022 as well as the January 2020 highs. This resistance area may thus cap in the short-term, though. If not, the July 2019 high at 7,730 would be next in line.
Intraday support is to be found around the 7,618 to 7,617 November and December highs and further support around the 7,577 August peak.
DAX 40 rally loses upside momentum as German factory orders plunge
The DAX 40’s strong early January rally is beginning to lose upside momentum as German factory orders slumped 5.3% month-on-month in November versus a downwardly revised 0.6% in October and worse than a forecast 0.5% drop.
German retail sales jumped 1.1% month-on-month in November, though, compared to a 2.8% drop in October and a forecast of a 1.0% rise.
Resistance can be spotted around the 14,606 early December high and further up at the 14,677 mid-December peak whereas minor support below Thursday’s low at 14,402 is to be seen at the end of November low at 14,325.
Key support sits at 14,129 to 14,125, made up of the mid-November and early December lows and the 22 December high.
Nasdaq 100 remains under pressure ahead of US NFP data
The Nasdaq 100 remains in the doldrums and continues to slide ahead of Friday’s Non-Farm Payroll data coming after a strong private-sector ADP report yesterday and ahead of next week’s US earnings season.
The index remains within its one-month downtrend from its 12,258 December peak, with lower highs and lower lows being visible on the daily chart, and gradually slips towards the November-to-December 10,670 to 10,603 lows which represent key support. If fallen through, the October trough at 10,433 would be back in the picture.
For a bullish reversal to become a possibility, the index would in the first instance need to rise above its early January high at 11,096 and then ideally also above the 21 December high at 11,287 on a daily chart closing basis.
Immediate resistance can be spotted at Thursday's high at 10,962.
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