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

Indices have continued Friday’s bounce into the new week, but for the DAX the outlook remains bleak.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2017-07-31T09:45:26+0100

German stock exchange trader

Source: Bloomberg

A good start to the week for FTSE 100

Friday’s dip below 7360 was met by buying, and further momentum this morning has lifted the FTSE back above 7400. Last week saw price action falter at the descending trendline off the June high, so we would need to see a close above 7460 to break this. From there a move to 7500 and higher comes into view.

A close below 7360 would be a bearish development, although it would require a firm drop below the 7300 area to really indicate more weakness is ahead.

FTSE chart

FTSE chart

FTSE chart

DAX between a bounce a new lower low

The DAX finished the week on a poor note, touching its lowest level since mid-April. A key point of interest last week was provided at 12,180, with dips below this area finding buyers.

The creation of a new lower low would certainly suggest that the bears still have the upper hand, as they have since early June. A bounce would target 12,310 in the short term, followed by the descending trendline off the June highs.

DAX chart

DAX chart

DAX chart

S&P 500 on a high

A fresh record high for S&P 500 last week and a stronger finish to the session on Friday sets us up for a good start to the new week today, and the new month tomorrow.

Last week’s 2483 high is the only point of resistance, while support on the daily chart could come into play around 2454. Intraday, 2465 was the area that prevented further downside last week, so this is the immediate area to watch.

S&P 500 chart

S&P 500 chart

S&P 500 chart

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