Nikkei 225 rallies as Nasdaq 100, FTSE 100 see minor bounce

Nikkei 225 begins week on strong footing

A surprise interest rate cut in its 14-day reverse repo rate by 10 basis points (bps) to 1.85% by the People’s Bank of China (PBOC) was positively interpreted by investors in Asia, leading to a 1.5% gain in the Nikkei 225 on Monday morning.

The 200-day simple moving average (SMA) at 38,548 has now been reached but seems to act as resistance. If overcome, the late July and early September highs at 39,179-to-39,281 would be next in line.

Minor support can be seen along the 55-day SMA at 37,153 and the 12 September high at 37,062.

Nasdaq 100 flirts with August/September highs

The Nasdaq 100 is grappling with its August and last week’s highs at 19,938-to-19,955, a rise above which would put the psychological 20,000 mark on the map, though. Further minor resistance can be spotted around the 12 July low at 20,130.

Support below the September minor uptrend line at 19,770 sits at Thursday’s 19,605 low and its 13 September 19,557 high. Only a fall through the 16 September low at 19,288 would change the short-term still bullish outlook.

FTSE 100 tries to regain some of Friday’s losses

The FTSE 100 tries to overcome its 55-day SMA at 8248, having so far recovered from Friday’s 8196 low. Further minor resistance can be found at the 20 August 8240 low.

For the bulls to be back in control a rise above last week’s high at 8372 would need to ensue.

Failure at Friday’s 8196 low would put the early September low at 8153 back on the cards.