Global indices were mixed this week as investors listened to statements from top central bank officials like Jerome Powell and Christine Lagarde. They also reacted to the US-Vietnam trade deal and the coming July 7 deadline.
Stocks also reacted to the strong US nonfarm payrolls data and the passing of Donald Trump’s One Big Beautiful Bill. US stock indices were among the best performers, with the Nasdaq 100 and S&P 500 reaching their all-time highs.
This article conducts technical analysis on top global indices like the Hang Seng, Nikkei 225, and the FTSE 100.
Hang Seng Index analysis
The Hang Seng Index was relatively unchanged this week. The main China-related news was that Donald Trump was considering a visit to China later this year. Additionally, the US permitted GE Aviation to resume selling engines to the country.
The weekly chart shows that the Hang Seng Index has been in a bullish trend in the past few months. It has jumped from last year’s low of H$14,800 to a high of H$24,835.
The index formed a golden cross in May as the 50-week and 200-week Exponential Moving Averages (EMA) crossed each other. A golden cross is a highly bullish patterns in technical analysis.
It is now nearing the key resistance level at H$24,835, where it formed a double-top. Therefore, more gains will only be confirmed when the index jumps above the key resistance level at H$24,835. A move above that level will point to more gains, potentially to the 78.2% retracement level at H$27,588.
Nikkei 225 Index analysis
Japan’s Nikkei 225 Index was unchanged this week as traders remained concerned about Donald Trump’s tariffs. The US and Japan have not yet reached an agreement in the past three months. This is notable since Japan and South Korea were two of the first companies to start talks with the Trump administration.
Therefore, there is a possibility that Trump will increase Japanese tariffs, which will hurt top companies like Toyota and Honda. At the same time, Japanese exporters are being hurt by the strong local currency, with the yen soaring by almost 10% against the US dollar.
The index has formed a golden cross pattern and is hovering at an important resistance level since it failed to move above several times between October last year and January this year.
The index has also formed an inverse head-and-shoulders pattern, a popular bullish reversal pattern. Therefore, it will likely lead to more gains, potentially to the key resistance level at 42,000 yen.
FTSE 100 index forecast
The FTSE 100 Index formed a V-shaped recovery after crashing to a low of £7,542 in April. It has rebounded and is now hovering near its highest level this year.
The index has moved above the 50-day and 200-day moving averages. Like the Nikkei 225, it has formed an inverse head and shoulders pattern, which could push it much higher over time.
More gains will be confirmed if the FTSE 100 Index jumps above the neckline at £8,893. A move above that level will point to more gains, potentially to £10,000 over time.
Nifty 50 Index prediction
The Nifty 50 Index has bounced back in the past few months, moving from a low of ₹21,750 on April 7 to the current ₹25,415. It has also moved slightly above the 50-day and 200-day moving averages.
Most recently, it moved above the key resistance level at ₹25,205, the highest swing on June 11. It has remained above the short and medium-term moving averages.
The index is also forming a bullish flag pattern, pointing to more gains in the coming weeks. If this happens, the next level to watch will be at ₹26,000.
Read more: India-US trade deal: will red lines derail a last-minute breakthrough?
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