CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

Levels to watch: FTSE 100, DAX and S&P 500

The new month has begun with gains, on hopes of an easing of trade war tensions.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2018-12-03T09:52:17+0000

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FTSE 100 breaks through resistance

The week has started with the FTSE 100 leaping to the 50-day simple moving average (SMA) of 7127, having taken out the resistance levels around 7060 and then 7105.

The next areas to watch are 7127 and then 7200, the high from the beginning of November. Trendline resistance from the August high comes into play just above 7200. Having gapped higher, the index may retreat slightly, but these may well be further buying opportunities.

FTSE 100 chart

FTSE 100 chart

FTSE 100 chart

DAX steams ahead

The DAX has surged, rallying to a near three-week high. The first point of interest will be the 50-day SMA (11,603), which has been problematic for the index since August.

Rallies above here since then have been short-lived, so a sustained push above here would be viewed as bullish. From here, 11,704 comes into view, and then the October high at 11,850. Dips back towards the overnight gap at 11,400 would still be possible buying opportunities.

DAX chart

DAX chart

DAX chart

S&P 500 revisits recent highs

The gap higher has carried the S&P 500 back above 2811, towards the 2820 peak from October and November.

A breakout above here brings 2877 and then 2940 into play. Dips back towards 2740 remain buying opportunities.

S&P 500 chart

S&P 500 chart

S&P 500 chart

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