FTSE 100 trades at 2-year highs
The FTSE 100’s advance above its 7634.5 January high has practically taken it back to its pre-pandemic December 2019 and January 2020 peaks at 7680 to 7690. These may offer short-term resistance this week.
Slightly further up the July 2019 peak can be spotted at 7730.
Support remains to be seen between the 27 January and 2 February highs and along the one-month uptrend line at 7613 to 7591 with further minor support being found at the early January 7529 high.
DAX continues to rise but nears resistance at 15,573 to 15,632
The DAX 40 has had a good day yesterday and heaved itself back over the minor psychological 15,500 mark with the 15,573 to 15,632 resistance zone about to be hit. It is comprised of the two-month downtrend line, late January highs as well as 55- and 200-day simple moving averages (SMAs).
Further resistance sits at the 15,739 early February high, a rise above which would put the January peak at 16,288 back in the frame. Only a currently unexpected fall through the 15,060 to 15,026 support region, consisting of the 26 November, 20 December and 27 January lows, would target the next lower band of support at 14,917 to 14,840, made up of the November and January lows.
Nasdaq 100 looks bid ahead of US CPI data
On Tuesday the Nasdaq formed a Bullish Engulfing pattern on the daily candlestick chart and has since risen back to the 200-day SMA at 15,090 which capped ahead of the release of US CPI data for January, likely to come in at 40-year highs.
Another strong inflation reading later today could put pressure on equities once more as worries about tighter US monetary policy re-emerges. Technically speaking the Nasdaq remains under pressure while the resistance zone made up of the 10 January low and the early February high at 15,165 to 15,276 forms a barrier.
Were this resistance area to be overcome, however, it would bring about a fresh bullish outlook with the 55-day SMA at 15,602 being in focus.
