Nikkei 225 flat with FTSE 100, DAX 40 expected to move little as US shut

Nikkei 225 Stays Flat

This Friday, the Nikkei 225 index was able to break through the 55-day simple moving average (SMA) at 38,454 and the 200-day SMA at 38,477. Despite being held back by the 55-day SMA for the past few weeks, the index is still below the peak it reached in late July at 39,281. It is currently moving within a range and not showing any significant upward momentum.

If the price drops below the low point from last week at 37,817, it could hit the low point from the previous Monday at 37,163 and possibly test the support level at 36,000.

As long as the low of 37,163 on August 19th is not breached, the short-term positive outlook remains unchanged.

The FTSE 100 is now trading below the highest point reached in early August, which was 8,404. Last week, it briefly reached a 3-month high of 8,419 before dropping back down.

In general, the market is expected to continue to rise as long as it stays above the low point reached on August 20th at 8,240. If it drops below that, it will likely encounter resistance at the 55-day Simple Moving Average at 8,238.

DAX 40 Trading Near All-time Highs

Earlier this week, the DAX 40 reached a new all-time high of 18,971. It's possible that this level could be tested again on Monday, with traders keeping an eye on the 19,000 mark as a potential small psychological target for the index to aim for.

Small assistance can be seen in the period between June and July, with lows at 18,786 to 18,782.