Nasdaq 100, DAX 30 & FTSE 100 Price Outlooks:
Nasdaq 100 Technical Forecast
The Nasdaq 100 remains a pioneer in the equity world, pressing to new all-time highs as other indices meander beneath prior peaks. As a result, the tech-heavy index has climbed to the top of an ascending channel that has seemingly influenced price at numerous occasions dating back to April. With the arrival of earnings season and with little space to work with on the topside, earnings-related volatility could spark a quick pullback for the Nasdaq if reports disappoint.
Nasdaq 100 Price Chart: 4 – Hour Time Frame (April – July)
With that said, I tend to favor a bearish bias here for the coming days as the risk-reward relationship seems to favor the downside. While the Nasdaq can, and certainly has in the past, discard important technical levels, price action throughout last week revealed the channel’s upper bound still possesses price influence.
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Therefore, the large area of open space beneath the current trading price allows for bearish opportunities in the shorter-term with potential levels of invalidation slightly above the ascending channel. Still, there is little to suggest an immediate reversal is due as the Nasdaq has proved almost impervious to bad news.
DAX 30 Technical Forecast
The DAX 30 has also run out of room in its technical formation, but lacks the same degree of exuberance compared to the Nasdaq 100 and more recently the Shanghai Composite. Thus, if losses do occur, it could be argued declines may be more measured. Either way, nearby resistance looks to reside narrowly beneath 13,000 will nearby support may exist at the 12,450 and 12,000 levels respectively.
DAX 30 Price Chart: 4 – Hour Time Frame (February – July)
( 15:07 GMT )
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Weekly Stock Market Outlook
FTSE 100 Technical Forecast
While the other indices have had their struggles, perhaps none have performed as unimpressively as the FTSE 100. Breaking beneath an ascending trendline just last week, the equity index has established yet another worrisome price development as it further the series of lower-highs and will now have to negotiate the same trendline if it is to return higher.
FTSE 100 Price Chart: 4 – Hour Time Frame (March – July)
Either way, the technical outlook of the FTSE 100 remains pretty underwhelming and traders looking for bullish equity exposure may find greener pastures elsewhere for the time being. In the meantime, follow @PeterHanksFX on Twitter for updates and analysis.
–Written by Peter Hanks, Strategist for DailyFX.com