FTSE 100, DAX 40 and Nasdaq 100 likely to end week on a quieter note
Outlook on FTSE 100, DAX 40 and Nasdaq 100 as volatile week draws to an end.
FTSE 100 tries to stabilise as UK retail sales unexpectedly rise
The FTSE 100 index has tried to find support along the 200-day simple moving average (SMA) at 7,429 as UK retail sales surprised to the upside and rose by 1.2% month-on-month in February from an upwardly revised 0.9% gain in January and versus an expected rise of 0.2%.
Were the index to close on Friday around the 200-day SMA, it would mark the first slightly positive week after the past couple of weeks’ strong sell-offs due to the banking crisis.
Provided that Thursday’s low at 7,416 holds on a daily chart closing basis, a recovery next week towards this week’s high at 7,587 may ensue, a rise above which would push the 15 March high at 7,641 to the fore, above which sits strong resistance at 7,708 to 7,724, consisting of the mid-January and early February lows.
Support below the 7,416 low can be found around the 7,296 December low.
DAX 40 eyes 55-day SMA while 15,011 holds
The DAX 40 slid back below its 55-day SMA at 15,258 on Wednesday and capped it's attempt to move higher again on Thursday as investors continue to grapple with tightening monetary conditions and lingering worries about further bank failures being seen.
From a technical perspective, while Thursday’s low at 15,011 holds on a daily chart closing basis, further upside back towards the 55-day SMA and this week’s high at 15,258 to 15,304 is likely to be seen.
An advance and daily chart close above the 15,304 level would open the way for the 13 March high at 14,486 to be reached, a rise above which would confirm the resumption of the October-to-March medium-term uptrend.
Were Thursday’s low at 15,011 to be slid through, however, the mid- to late January lows at 14,992 to 14,904 may be revisited. Further down sits the 13 March low at 14,885.
Nasdaq 100 likely to end week on a quieter note
Despite a lot of volatility having thrown the Nasdaq 100 around this week and the US 2-10 yield curve un-inverting following an earlier inversion, normally a sign that a recession is on its way as short-term yields fall sharply in anticipation of rate cuts, the index looks bid and may well end the week higher for a second week in a row.
The February-to-March highs at 12,896 to 12,947 need to be exceeded on a daily chart closing basis, for further medium-term upside to enter the fray with the minor psychological 13,000 mark representing the first upside target.
Since banks continue to borrow heavily at the Fed's discount window, a sign that stresses remain despite the actions taken by regulators, a slip through the March uptrend line at 12,715 remains a possibility and may lead to the 17 March high at 12,673 being revisited.
Only a slip and daily chart close below Wednesday’s low at 12,545 would cloud our bullish outlook, though, and put Monday’s low at 12,398 back on the map.
Related articles
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
