Nasdaq 100, Dow Jones, DAX 30 Forecasts for the Week Ahead
Oct 17, 2020 (MENAFN via COMTEX) —
(MENAFN – DailyFX) Nasdaq 100, Dow Jones, DAX 30 Forecasts: Neutral
After consolidating last week, the Nasdaq 100 could look to continue its upward climb The Dow Jones is still wrestling with an upward channel from June The DAX 30 Nasdaq 100 Technical ForecastOutlook: Neutral
After an explosive start last week, the Nasdaq 100 completed the round-trip on Friday, closing just marginally higher than Monday’s open. Consequently, last week served as a period of consolidation for the Nasdaq after it established big gains in short order – largely devoid of a direct catalyst. Therefore, the foundation for a continuation higher has been laid and the tech-heavy index may look to employ support below as a springboard if risk appetite reignites next week.
Nasdaq 100 Price Chart: 4 – Hour Time Frame (September 2020 – October 2020)
To that end, initial support may reside around the 11,800 level which is narrowly beneath Friday’s closing price. Last week we outlined a potential cup and handle formation on the Nasdaq which may still be in play, but has undoubtedly been muddied somewhat. Regardless, the same question of support remains. Will 11,800 serve as a willing launchpad, or will further consolidation down to the 11,600 level be required?
Either way, I believe the medium-term outlook is tilted to the topside which may see the Nasdaq encounter resistance should it continue higher in the weeks ahead. An initial barrier likely resides around 12,045 which served as both resistance and support last week, followed by subsequent resistance around the 12,200 level. Should 12,200 break, bulls may look to continue the rally, possibly setting their sights at the all-time high of 12,465.
Dow JonesTechnical ForecastOutlook: Neutral