(MENAFN- DailyFX)
S & P 500, DAX 40 and FTSE 100 FORECAST: BULLISH
- Global stocks attempt to recover bullish momentum after Evergrande-led drop
- S & P 500 , DAX 40, and FTSE 100 key levels to watch
S & P 500
The S & P 500 has bounced back from its recent two-month low but is finding some resistance in its attempt to get back above its previous ascending trendline support. The 20-day and 50-day SMAs are converging around 4,465 which is causing some rejection for bulls as a possible short-term bearish cross may unfold. For immediate support, the 4,400 mark looks like a good target area but, as the RSI is dipping, the pullback may intensify further towards the recent two-month low around 4,300.
S & P 500 Daily Chart DAX 40
The DAX 40 hasn't been able to make any meaningful progress since August after consecutively being rejected at the 16,000 mark. This past week's pullback has allowed some fresh bullish momentum to come in but the index continues to be overstretched at current levels, which is causing a lot of resistance in the attempt to break higher again. The recent highs since the end of August are being rejected at lower levels and are forming the start of what could be a descending trendline resistance, which would be confirmed if the next attempt to push higher gets rejected around 15,720/15,710 over the coming days.
DAX 40 Daily Chart FTSE 100
The FTSE 100 has been coming under pressure recently as an energy crisis seems to be unfolding in the UK, leaving many producers bankrupt. There is also the threat of less monetary stimulus from the Bank of England in the coming months as economic conditions are improving, which is also acting as a headwind for UK stocks, other than the banking sector, which would benefit from higher interest rates down the line. As the daily chart shows, the UK index has been experiencing some strong pullbacks within a session that has then reversed, leaving the daily candlesticks with long tails every few days or so. This is showing growing momentum to break lower but buyers stepping in to prevent the pullback from materialising, which then leads to another break higher. If this pattern continues, we may see the FTSE 100 consolidate around 7,042 over the coming week as sellers work up the momentum to attempt a new bearish reversal.
FTSE 100 Daily Chart Advertisement
Learn more about the stock market basics here or download our free trading guides .
--- Written by Daniela Sabin Hathorn, Market Analyst
Follow Daniela on Twitter @HathornSabin
MENAFN25092021000076011015ID1102861489
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.