FTSE 100, DAX 40 and Nasdaq Rallies are Taking a Breather​​​

Article by IG Senior Market Analyst Axel Rudolph

FTSE 100, DAX 40, Nasdaq 100 Analysis and Charts

FTSE 100 rallies on softer US and UK inflation

​​A host of large-cap dividend payments on Thursday put the FTSE 100 on the back foot, together with disappointing results from Burberry’s with its share price dropping by over 10%.

​Early Friday morning UK retail sales slid to their lowest level since the 2021 COVID-19 lockdown, by 0.3% in October 2023, following a downwardly revised fall of 1.1% in September. This did not prevent the FTSE 100 from recovering from Thursday’s low at 7,403. While it holds, the 9 November high at 7,466 may be reached. Further up sits more significant resistance between the early November high and the 55-day simple moving average (SMA) at 7,484 to 7,501.

​Support below Thursday’s 7,430 low can be found between the early September and early October lows at 7,384 to 7,369.

FTSE 100 Daily Chart

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​DAX 40 trades in two-month high

​The DAX 40 continues to rise, having so far seen eight consecutive days of gains, and is approaching the August and September highs at 15,992 to 16,044 which may short-term cap.

​Minor support below Thursday’s 15,710 low can be seen along the 200-day simple moving average at 15,661.Further down lie the early October high at 15,575 and the mid-September low at 15,561.

DAX 40 Daily Chart

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​Nasdaq 100 flirts with the 15,932 July peak

​The Nasdaq 100’s 12% rally off its late October low has taken the index to its July high which is short-term thwarting the advance ahead of the weekend amid profit taking and as the US’ largest retailer WalMart tumbles 8% amid a cautious outlook for consumer spending.

​While the July and current November highs at 15,932 to 15,978 cap, Thursday’s low at 15,736, and the steep October-to-November uptrend line at 15,724 are likely to be revisited. Good support can be found between the 15,628 to 15,520 early to mid-September highs, though.

​A rise above 15,978 would engage the December 2021 high at 16,660.

Nasdaq 100 Daily Chart