FTSE 100 drops to key support ahead of budget as DAX 40 slips but NASDAQ 100 rises
FTSE 100 drops to key support
The FTSE 100 has come off its 1 ½ month mid-October high at 8,397 and tumbled to its key 8,183-to-8,153 support zone ahead of Wednesday’s UK budget. This support zone, made up of the September-to-early October lows, is key for the medium-term trend as a fall through it on a daily chart closing basis would put the May-to-July lows at 8,138-to-8,056 on the map.
Minor resistance above Friday’s 8,222 low can be seen at the 23 October low at 8,240. For the bulls to be back in control a rise and daily chart close above Tuesday’s high at 8,326 would need to be seen.
DAX 40 slips through August-to-October uptrend line
The DAX 40 index is showing short-term signs of weakness as it is in the process of slipping through its August-to-October uptrend line at 19,465, now resistance line, towards last week’s low at 19,301. If fallen through, at least an interim top would be formed with the 18,909 early October low being back in sight.
Immediate downside pressure should retain the upper hand while the index stays below Tuesday’s high at 19,643, a rise above which would point to the resumption of the medium-term uptrend.
NASDAQ 100 aims for July record high
The NASDAQ 100's advance from last week’s low at 19,928 has taken it to a 3 ½ month high with the July peak at 20,760 remaining in sight while Tuesday’s low at 20,294 underpins.
Only a bearish reversal and daily chart close below 20,294 may lead to the August-to-October uptrend line at 19,985 being revisited, together with last week’s low at 19,928.