Nikkei 225, FTSE 100 and DAX 40 begin week on a positive note
Nikkei 225, FTSE 100 and DAX 40 begin week on a positive note amid low volume trading as US traders are absent due to Veterans Day.
Nikkei 225 range bound
The Nikkei 225 continues to trade below last week’s 40,168 low while remaining above Friday’s 38,944 low amid quiet trading as several countries such as the US are shut for veterans Day.
A rise above the 40,168 early November high would have the 40,286 October peak in its sights whereas a fall through 38,944 the August-to-November uptrend line, 200- and 55-day simple moving averages (SMA) at 38,640-to-38,432.
FTSE 100 bounces off support
The FTSE 100's Trump-induced rally to Wednesday’s 8,304 high on the back of rallying US stock indices has been followed by a drop to 8,061 on Friday, amid a lack of any new China stimulus developments meant that the FTSE 100 was under pressure as heavyweight mining stocks shed ground after the National Policy Committee failed to unveil anything of note.
Monday morning is off to a more positive start with the index once again recovering from its 8,070-to-7,056 support zone which consists of the 25 July and late October lows. Investors should not read too much into the current bounce, though, as trading volumes are light with heavyweights like the US shut for Veterans Day.
Resistance can be spotted between the September and early October lows at 8,153-to-8,196 and support at 8,070-to-8,056. A slip through this area would most likely engage the psychological 8,000 mark as well as the August low at 7,914.
DAX 40 looks short-term bid
The DAX 40 index begins the week on a positive note by rising towards Friday’s 19,453 high, a move above which would put the late September high at 19,492 and last week’s high at 19,566 on the cards.
While the August-to-November uptrend line at 19,088 underpins, upside pressure should be maintained. Only failure at the early October 18,909 low could point towards a medium-term top being formed.
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