Nasdaq 100, DAX 30, FTSE 100 Forecasts
- The Nasdaq 100 is wading in record territory and will look to enjoy the support of various technical levels beneath should risk aversion spike
- Elsewhere, the DAX 30 has continued its consolidation around the 13,250 area
- Meanwhile, the FTSE 100 will look for continued support from a nearby Fibonacci level
Nasdaq 100 Technical Forecast
The Nasdaq 100 has moved deeper into uncharted territory, alongside the Dow Jones and S&P 500, and now enjoys a plethora of technical levels beneath that it can choose from in the event support becomes required. While the fundamental forecast for US equities will likely highlight various concerns for the Nasdaq, it is hard to argue against all-time highs from a technical perspective. With that in mind, it may be of little surprise that the Nasdaq’s continuation higher is contingent on an accommodative fundamental backdrop and the efficacy of technical support beneath the current price.
Nasdaq 100 Price Chart: 4 - Hour Time Frame (August 2019 – November 2019) (Chart 1)
To that end, the tech-heavy index has various levels to choose from. First and foremost, an ascending trendline from October could look to offer some buoyancy but is likely to be the weaker of the levels highlighted. Secondarily, a band of support from prior highs and the 200-period moving average will look to keep price afloat around the 8,200 level before subsequent support can come into play around the psychologically significant 8,000 mark.
DAX 30 Technical Forecast
Shifting gears to the German equity index, the DAX 30 finds itself in a similar position despite its inability to establish new highs. The index has consolidated throughout November, helping to solidify gains established in September and October. Now, RSI is receding from overbought territory and a month of little progress is beginning to look more like a lack of bullish appetite – rather than healthy consolidation. That being said, a deeper retracement to the 78.6% Fib level and the 50-day moving average around 12,800 may be in store before another move higher.
DAX 30 Price Chart: Daily Time Frame (January 2018 – November 2019) (Chart 2)
Chart created with TradingView
FTSE 100 Technical Forecast
While the Nasdaq tracks in record territory, the FTSE 100 has been kept in check by the ongoing Brexit debacle. After a recent rejection around the 7,440 level, the FTSE may look to catch its breath and employ support from the nearby Fibonacci level and subsequent moving averages which both reside above 7,300. Once the index regains its footing, bulls can attempt another run at resistance which has stalled recent attempts higher. In the meantime, follow @PeterHanksFX on Twitter for updates and analysis.
FTSE 100 Price Chart: 4 - Hour Time Frame (September 2019 – November 2019) (Chart 3)
--Written by Peter Hanks, Junior Analyst for DailyFX.com
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