Levels to watch: FTSE 100, DAX and S&P 500
The week has seen the steady recovery continue, and it looks like there is more to come for indices.
FTSE 100 keeps pushing higher
Yesterday’s retreat towards 6850 provided a new higher low for buyers to enter, the FTSE 100 then duly pushed to a new higher high in the current move higher.
Having moved above the 50-day simple moving average (SMA) of 6905, the index is now looking to test trendline resistance from the August highs, which would suggest resistance around 7050-7060. The longer-term picture remains bearish unless this line is broken. However, for the time being pullbacks look to be buying opportunities.
DAX targets 11,000
Early weakness yesterday resulted in a higher low and then a higher high, as the DAX pushes on towards 11,000.
The 50-day SMA at 11,038 is the next target, while the support zone around 11,050 could also provide some resistance. The bullish view prevails in the short term unless we see a move below 10,800.
S&P 500 eyes up 2600
The steady move higher continues here, with the S&P 500 moving towards 2600 and continuing its recovery.
The next area of resistance to watch would be the 2624-2632 zone, marked by the lows of October and November, and the 50-day SMA. Immediate support is found around 2550.
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.
See an opportunity to trade?
Go long or short on more than 16,000 markets with IG.
Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets