Nasdaq 100, Dow Jones, DAX 30 Forecasts for the Week Forward

Nasdaq 100, Dow Jones, DAX 30 Forecasts: Bearish

• The Nasdaq 100 broke down final week after falling via a number of ranges of help
• The Dow Jones established a lower-low after slipping beneath the September trough
• The DAX 30 was eviscerated and can look to regain its footing after plummeting greater than 1,000 factors

Nasdaq 100 Technical Forecast

Outlook: Bearish

Shares suffered their worst month-to-month efficiency since March after promoting pressures picked up within the final week of October. The shift in threat urge for food noticed the Nasdaq 100 and Dow Jones plummet beneath key technical ranges. Whereas shares closed off their lows on Friday, the injury dealt to the technical formations has been dealt which can depart them weak to additional losses within the week forward.

Nasdaq 100 Worth Chart: 4 – Hour Time Body (September 2020 – November 2020)

That being stated, the Nasdaq 100 stays one of the best performer of the three main US indices. Because of this, the tech-heavy index resides above its September lows of 10,676. Ought to value fall beneath 10,676, it will critically undermine the technical formation as it will set up a lower-low for the index, compounding the lower-high from mid-October.

Nasdaq Buying and selling Fundamentals: The way to Commerce Nasdaq 100

Consequently, holding above 10,676 could also be key if the Nasdaq is to stave off additional losses. On an intraday foundation, the 10,950 to 10,920 space could present some buoyancy earlier than secondary help will be examined.

Dow Jones Technical Forecast

Outlook: Bearish

Not like the Nasdaq 100 which has been a beacon of energy, the Dow Jones stays a laggard amongst the US indices and this has been evidenced most just lately by a breach of the September low. Additional nonetheless, final week’s losses noticed the Industrial Common slip dangerously near the 200-day shifting common round 25,775. Coinciding with two swing lows from July, the 26,000 to 25,775 space could also be an early zone of potential help.

Dow Jones Worth Chart: 4 – Hour Time Body (June 2020 – November 2020)

Past that, help turns into tougher to establish. Potential areas of buoyancy could reside barely beneath 25,000 which aligns with numerous swing-highs and swing-lows from April to July. Both manner, the Dow posted a decrease excessive and a decrease low in October which is a worrisome signal going ahead.

Whereas September’s losses have been initially perceived as a interval of consolidation earlier than a longer-term uptrend, October provided one other view, hinting that September could have been an early signal of a deeper contraction.

DAX 30Technical Forecast

Outlook: Bearish

The DAX 30 is not any completely different. Whereas the basic forces at play can range throughout the US and European indices, the injury dealt to the technical panorama of the German fairness index final week was arguably worse than that seen on the Nasdaq and Dow Jones. Suffice it to say, the DAX 30 was left greedy for help from any and all help final week after it was hamstrung on Monday.

DAX 30 Worth Chart: 4 – Hour Time Body (April 2020 – November 2020)

Following an absolute freefall, the German index regained its footing round 11,340. The extent aligns with the April peak and may act as preliminary help within the occasion of additional bearishness subsequent week. Subsequent help could reside across the Fibonacci stage at 10,900.

To the topside, the Fibonacci stage round 11,585 could provide affect – both bullish or bearish since it’s so near the present buying and selling value – subsequent week. Regardless, the DAX 30 will probably require consolidation earlier than a continuation in both path will be established following the drastic decline final week. Within the meantime, observe @PeterHanksFX on Twitter for updates and evaluation.

–Written by Peter Hanks, Strategist for DailyFX.com