FTSE 100, DAX 40 and NASDAQ 100 remain under pressure ahead of US payrolls
FTSE 100, DAX 40 and NASDAQ 100 remain under pressure ahead of US non-farm payrolls and the weekend during which Iran may fire more missiles at Israel.
FTSE 100 falls through key support
The FTSE 100's fall through its key 8,183-to-8,153 support area following Wednesday’s UK budget has taken it below its 200-day simple moving average (SMA) at 8,104 to 8,070 on Thursday. This low was made close to the late July low at 8,056, both of which aren’t expected to be slid through ahead of US non-farm payrolls (NFPs). Were this to happen, the psychological 8,000 mark would be next in line.
Minor resistance is now seen within the previous support zone, now because of inverse polarity a resistance zone, and can be found at the September-to-early October lows at 8,153-to-8,196. This we expect to cap on Friday. Further up sits Friday’s 8,222 low, above which lies the 23 October low at 8,240.
For a bullish reversal to be seen, a rise and daily chart close above Tuesday’s high at 8,326 would need to occur. This currently looks highly improbable, though.
DAX 40 revisits early October low
The DAX 40 index has seen three straight days of falling prices and so far slid by nearly 3% from this week’s high with the early October low at 18,909 representing the next downside target. Failure there on a daily chart closing basis would confirm a top formation and put the late July high at 18,580 on the map.
Minor resistance can now be spotted at the 23 October low at 19,301.
NASDAQ 100 drops to three week low
The NASDAQ 100's swift bearish reversal off Tuesday’s 20,652 high has taken it through the August-to-October uptrend line at 20,035, now resistance, to 19,877, a three- week low. Were it to give way, the early October low at 19,611 would be back in play, a fall through which creating a bearish trend reversal.
Resistance above the breached three-month uptrend line at 20,035 can be seen at the late September high at 20,316.
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