FTSE 100, Nasdaq 100, DAX 40

Article by IG Senior Market Analyst Axel Rudolph

FTSE 100, DAX 40, Nasdaq 100 Analysis and Charts

​​​FTSE 100 on track for second week of gains

​The FTSE 100, which slid back to its breached July-to-August downtrend line on Thursday, is bouncing off it ahead of US Non-Farm Payrolls on Friday. ​The UK blue chip index looks to be on track for a second week of gains as investors positively interpreted the weaker US growth and employment data out this week as dovish with regard to monetary policy. ​The 55-day simple moving average (SMA) at 7,482 is back in focus, as is this week’s high at 7,510.

​Minor support can now be found along the breached July-to-August downtrend line at 7,425 ahead of more significant support made up of the May, June, and early August lows at 7,437 to 7,401.

FTSE 100 Daily Chart

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​DAX 40 is expected to end the week on a positive note

​The DAX 40 continues its advance as China’s manufacturing activity unexpectedly expanded in August, boosting Asian stock markets, except Australia’s AU200. ​Thursday’s high at 16,044 and the 10 August high at 16,062 remain in sight. These highs need to be exceeded for a medium-term bullish reversal to be confirmed.

​Minor support comes in at the 15,895 high seen last week, ahead of Wednesday’s low at 15,821. ​Further support comes in along the breached one-month resistance line, now because of inverse polarity a support line, at 15,685.

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DAX 40 Daily Chart

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​Nasdaq 100 is losing upside momentum ahead of US NFP data

​The Nasdaq 100’s five consecutive days of gains take place among diminishing upside momentum as investors brace themselves for today’s US Non-Farm Payrolls. Nonetheless, the index regained most of its August losses within the past week as investors pursued a more dovish Fed outlook. ​Were this week’s high at 15,576 to be exceeded, the late July high at 15,807 would be in focus, together with the July peak at 15,932.

​Slips should find support around last week’s high at 15,369. Minor support below this level is seen along the 55-day simple moving average (SMA) at 15,236.

Nasdaq 100 Daily Chart