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 S&P 500

Markets are holding on to gains this morning, after the bulls took charge last week.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2017-02-13T09:24:07+0000

Trader in the New York Stock Exchange

Source: Bloomberg

FTSE 100 continues to gain

Small gains this morning come after a very strong finish to last week. The price looks somewhat overextended to the upside, with a pullback likely to take the edge off the bullish momentum seen since Wednesday. As long as the price holds 7200, we should expect further upside.

The first areas to look for on the upside are 7314 and 7360, with dips welcomed as further buying opportunities.

FTSE 100 price chart

FTSE 100 price chart

FTSE 100 price chart

DAX recovery set to continue

European markets have shown strength right out of the gate this morning, having pulled themselves up by the bootstraps last week and staged an impressive recovery.

The next resistance areas to watch are 11,770 and then 11,872, with 11,650 providing notable support at the end of last week. So long as this holds we can expect further upside.

DAX price chart

DAX price chart

DAX price chart

S&P 500 looks set for a pullback

Last week saw record highs again for US markets, having formed a firm base of support around 2280. The price has moved away from the three key moving averages, so we may see a pullback materialise here, which is to be welcomed. Fresh buying could show at 2300.

S&P 500 price chart

S&P 500 price chart

S&P 500 price chart

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Find articles by writer

CFDs are complex 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. Professional Clients can lose more than they deposit.

The value of shares and ETFs bought through an IG stock trading account can fall as well as rise, which could mean getting back less than you originally put in. Please ensure you fully understand the risks and take care to manage your exposure.

IG does not issue advice, recommendations or opinions in relation to acquiring, holding or disposing of a CFD. IG is not a financial advisor and all services are provided on an execution-only basis. This communication is not an offer or solicitation to enter into a transaction and shall not be construed as such.

IG is a trading name of IG Limited a company registered at 2702 & 2703 Level 27, Tower 2, Al Fattan Currency House, DIFC, Dubai, United Arab Emirates. IG is authorised and regulated by the Dubai Financial Services Authority (DFSA) under reference No. F001780.

The information on this site is not directed at residents of the United States, Belgium or any particular country outside the UAE and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.