Nasdaq 100, CAC 40, FTSE 100, DAX 30 Outlook for the Week Ahead

NASDAQ 100, CAC 40, FTSE 100, DAX 30 TECHNICAL OUTLOOK – BEARISH

  • Nasdaq 100 develops a dropping channel that may guide the prices lower
  • DAX 30 breaks out through multiple support layers, opening doors for extended drops
  • The CAC 40 and FTSE 100 trade closer to the lower end of the longstanding range

NASDAQ 100 FUNDAMENTAL FORECAST

BEARISH OUTLOOK

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The volatility of the market continued last week ultimately sending the futures markets, haven assets such as gold, and growth-sensitive currencies much lower. Amid the futures volatility, the bearish price rally created various key fundamental breaks, which might leave some indices weak to more losses. Because the tech-heavy NASDAQ 100 has been leading the global equities over the past few months, the newly formed declining channel may be a huge concern in the coming week.

NASDAQ 100 FORECAST CHART

Nasdaq-100-DAX-30

After they lead the coronavirus recovery action, the NASDAQ 100 has gone through some reversal with it falling faster and farther as compared to its counterparts. So, the NASDAQ 100 index has created a descending pattern from an array of the latest swing lows and swing highs, and the formation might help to guide NASDAQ 100 lower. Therefore, support at 10,680 and 10,600 technical levels may be essential when it comes to warding off more losses next week.

That said, there has some level of hope for the NASDAQ 100 since the decline has been the slow churn lower instead of an abrupt drop. After a considerable rally yesterday, Nasdaq 100 trades close to the top side of the declining channel as we head into next week as Australian Dollar Might Extend Fall Despite Eased Coronavirus Restrictions.

In case the bulls continue this action, the first resistance may be provided by the 23rd September high at 11,240 which aligns with the channels upper bound. The break over the territory might lead to more gains, but the near term trend is poised to decline further at this point.

DAX 30 FUNDAMENTAL FORECAST

BEARISH OUTLOOK

The DAX 30 experienced a significant fundamental breakdown earlier this week as it dropped below the ascending trendline that has further helped guide the index higher from June. Since then, prices have recovered from the previous drop, but the damage to a fundamental structure has been felt and the DAX 30 is weak to more losses.

DAX 30 DAILY CHART

Nasdaq-100

Keeping this in mind, the tertiary support for the renewed bearishness may settle at 12,200 levels.

FTSE 100 FUNDAMENTAL FORECAST

BEARISH OUTLOOK

At the moment, the FTSE 100 has suffered a significant breakdown and seems vulnerable to more losses as a result. With the continued gradual descent, the FTSE 100 currently stands close to the lower bound.

FTSE 100 DAILY CHART

CAC 40 FUNDAMENTAL FORECAST

NEUTRAL OUTLOOK

The CAC 40 seems highly endangered after it cratered to Fibonacci support at 4,670 last week. Although the breakdown has destroyed the fundamental outlook, the new position of this index might warrant some patience from a trading viewpoint.

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