Dow Jones, DAX 30, FTSE 100 Forecasts For The Week Of Nov. 30

 

KEY TALKING POINTS:

  • Dow Jones struggles to hold above 30,000
  • DAX 30 is caught under a key resistance line
  • FTSE 100 still shows good bullish potential once key Fibonacci resistance is cleared

With a pretty loaded economic calendar next week, we are likely to continue seeing equity markets focusing on vaccine news and containment measures from around the world. With global cases continuing to rise and Christmas plans in jeopardy, economic figures for the month of October are likely to be ignored as they will be disregarded as outdated, but we could see some impact from PMI figures as they are considered to be one of the most forward-looking.

Overall, positive momentum is still present but overbought conditions are starting to appear, which means we could see corrective moves in the weeks ahead. We mustn’t forget that, despite there being a light at the end of the tunnel and markets being forward-looking, there is still a lot of uncertainty and economic stability is likely to be a long way away. That is why risk-managing should be an important practice when placing trades given that market volatility can be sparked pretty quickly.

Top economic events next week

Dow Jones, DAX 30, FTSE 100 Forecasts for the Week Ahead

DOW JONES FORECAST

Outlook: Neutral

After roaring higher at the beginning of this month due to positive coronavirus vaccine news, the Dow Jones has reached another milestone last week: breaking above the 30,000 mark and setting a new all-time high. A shorter week due to the Thanksgiving holiday meant less momentum to hang on to, and so the equity index has seen a mild correction back towards 29,800, possibly brought on by profit-taking given the 30,000 mark was a culmination of a long-extended bullish run.

We need to keep in mind that investors might be getting too bullish, and further corrections cannot be rejected in the short-term. Looking back at what happened at the end of the summer, we could see the Dow pull back towards 28,000 before we are able to fully extend gains above 30,000. That said, positive vaccine news is likely to keep bullish momentum high and therefore there will likely need to be a catalyst for bearish pressure to swoop in. Looking at technical levels, 29,565 could be the first area of support if sellers come into control, followed by the low seen on Friday the 20th of November at 29,125.

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