Home Sports DAX boom, FTSE faces resistance after strong week of gains

DAX boom, FTSE faces resistance after strong week of gains

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Dax 40, FTSE 100 Key points:

  • German inflation off the charts, but Dax persistence holds
  • FTSE 100 down by the weekly high
  • European stocks have faced tough times as critical resistance firms

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European shares continued to rise sharply over the weekend after another volatile trading week. with DAX and CAC 40 holding on for four weeks straight FTSE 100 has recovered well in the last two weeks.

To summarize the economic events that shook the markets this week, ECB rate decision and corporate profits have been met with mixed reactions from outside major stock indices which assessed a significant part of geopolitical risks.

How politics and central banks affect currency markets? Visit DailyFX Education find out

With recent rate hike of 75 basis points announced by ECB (European Central Bank) the president Christine Lagarde Inflation data in Germany and France continue to rise.

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German Dax Technical Analysis

For the German Dax, the same support and resistance levels discussed recently continue to hold. With the bulls still struggling with wedge resistance near the psychological level of 13200, a rejection of the descending trendline could see prices retreat to 13000. A break of 13200 and 13375 is still needed for the upside to prevail, with the next bar It contains about 13572.

On the contrary, a breakout of the zone between 13115 and 12966 could provide additional relief to the bears.

German Dax 40 weekly chart

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I prepared the diagram Tammy Da Costa using TradingView

German Dax 40 daily chart

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I prepared the diagram Tammy Da Costa using TradingView

FTSE 100 Technical Analysis

While the appointment of newly elected British Prime Minister Risha Sunak has helped ease fears of ongoing political and economic uncertainty, the UK’s future trajectory remains uncertain.

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With the recent move above the psychological level of 7000 providing a a glimmer of hope for the bullsthe failure to lift prices above 7093 (the weekly high) led to the formation of a candle that engulfed the body of the previous candle (indicating strong revenge from the bears).

FTSE 100 daily chart

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I prepared the diagram Tammy Da Costa using TradingView

Similar to the levels discussed during the week, a move above this week’s high of 7093 draws attention to the psychological level of 7200.

If the downside persists, a move below 7000 and below 6850 could allow for a retest of 6825 and a potential bearish extension to the next support zone at 6790.

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— Posted by Tammy Da Costa, DailyFX.com analyst

Connect with Tammy and follow her on Twitter: @Tams707

https://www.dailyfx.com/news/dax-ftse-boom-faces-resistance-after-strong-week-of-gains-20221028.html

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