CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Levels to watch: FTSE, DAX and Dow

After a good week for markets, can the bulls keep the rally going?

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2017-07-17T09:01:58+0100

Market data figures

Source: Bloomberg

FTSE 100 still holding above the 100-day SMA

The FTSE broke higher last week, moving out of its 7300-7385 range on Wednesday. A drop back Thursday and Friday still saw the index hold above the 100-day simple moving average (SMA) at 7380, which remains the case today, along with the weekly pivot at 7383.

Last week’s bounce petered out around 7430, so this is the area to watch in the short term. A push above here and then through the 50-day SMA at 7451 means that the FTSE is then likely to challenge the trendline off the June highs, towards 7490.

FTSE chart

FTSE chart

FTSE chart

DAX rally stalled at 12,658

Buyers finally found the strength to get the DAX moving firmly off the 100-day SMA last week at 12,418, although the rally has stalled at the 50-day SMA at 12,658, with attempts to push above here running out of steam.

A close above here would mean that the all-time highs are back in prospect. A close below 12,580 would be a bearish development, but so long as this is avoided, further gains look likely and dips are there to be bought.

DAX chart

DAX chart

DAX chart

S&P 500 support area at 2454

The rally last week saw the S&P 500 hit new all-time highs, breaking the downtrend line off the June highs and proving that this bull market is not to be underestimated.

Support at 2454, the previous high, and around 2445, could be areas to watch for buying on weakness. It would need a close back below 2440 to suggest a more bearish angle on things.

S&P 500 chart

S&P 500 chart

S&P 500 chart

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