40 år i branschen
185 800 kunder världen över
15 000 marknader

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

Friday saw a recovery in risk appetite, but so far there is little real follow-up in the beginning of the week.

Data trader
Source: Bloomberg

FTSE 100 needs to keep the momentum going

As noted on Friday, the bulls have managed to hold the FTSE above 7260, but now need to clear the 7363 area to maintain momentum. Friday saw them post a strong rebound, but upward strength is fizzling out around the 7360 zone.

A close above 7363 clears the way back to 7400 and higher, and ends the drift lower. A failure to push on raises the prospect of a move to 7260, but only a break through there moves the outlook from consolidation to correction.

FTSE chart

DAX remains bullish

Last week was interesting for watchers of both momentum and technical analysis. DAX pushed to a new two-year high, and within a whisker of a new all-time high. It then dropped back but found support at a previous high, 12,179, and then rebounded.

Friday’s price action saw the index break the short-term trendline lower from the April high, so now the bulls need to push to the 12,316 high from 5 April, and 12,393 from the beginning of last week. A failure here raises the risk of a move to 12,179, with a daily close below here opening the way to 12,032 and then 11,893. Only a daily close below this last level breaks the bullish trend.

DAX chart

S&P 500 in defence

It was ‘honours even’ last week for both buyers and sellers on S&P 500. The former managed to prevent further downside by defending the 2340 area, but the latter held the falling trendline off the all-time high.

We need to see a close above 2375 to break this trendline, otherwise further losses could be in order. In the event of a push lower this week the potential support levels remain 2340 and then 2321. The loss of the latter, and a daily close below it, would be a very bearish development, raising the prospect of a move to 2303 and then 2280.

S&P 500 chart

Denna information har sammanställts av IG, ett handelsnamn för IG Markets Limited. Utöver friskrivningen nedan innehåller materialet på denna sida inte ett fastställande av våra handelspriser, eller ett erbjudande om en transaktion i ett finansiellt instrument. IG accepterar inget ansvar för eventuella åtgärder som görs eller inte görs baserat på detta material eller för de följder detta kan få. Inga garantier ges för riktigheten eller fullständigheten av denna information. Någon person som agerar på informationen gör det således på egen risk. Materialet tar inte hänsyn till specifika placeringsmål, ekonomiska situationer och behov av någon specifik person som får ta del av detta. Det har inte upprättats i enlighet med rättsliga krav som ställs för att främja oberoende investeringsanalyser utan skall betraktas som marknadsföringsmaterial. 

Artiklar av våra analytiker