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

Levels to watch: FTSE, DAX and Dow

After a good week for markets, can the bulls keep the rally going?

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2017-07-17T09:01:54+0100

Market data figures

Source: Bloomberg

FTSE 100 still holding above the 100-day SMA

The FTSE broke higher last week, moving out of its 7300-7385 range on Wednesday. A drop back Thursday and Friday still saw the index hold above the 100-day simple moving average (SMA) at 7380, which remains the case today, along with the weekly pivot at 7383.

Last week’s bounce petered out around 7430, so this is the area to watch in the short term. A push above here and then through the 50-day SMA at 7451 means that the FTSE is then likely to challenge the trendline off the June highs, towards 7490.

FTSE chart

FTSE chart

FTSE chart

DAX rally stalled at 12,658

Buyers finally found the strength to get the DAX moving firmly off the 100-day SMA last week at 12,418, although the rally has stalled at the 50-day SMA at 12,658, with attempts to push above here running out of steam.

A close above here would mean that the all-time highs are back in prospect. A close below 12,580 would be a bearish development, but so long as this is avoided, further gains look likely and dips are there to be bought.

DAX chart

DAX chart

DAX chart

S&P 500 support area at 2454

The rally last week saw the S&P 500 hit new all-time highs, breaking the downtrend line off the June highs and proving that this bull market is not to be underestimated.

Support at 2454, the previous high, and around 2445, could be areas to watch for buying on weakness. It would need a close back below 2440 to suggest a more bearish angle on things.

S&P 500 chart

S&P 500 chart

S&P 500 chart

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IG Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. 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. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.

Find articles by writer

Disclaimer:

All forms of investments carry risks and trading CFDs may not be suitable for everyone. CFDs are leveraged instruments and can result in losses that exceed deposits, so please ensure that you fully understand, and are aware of, the risks and costs involved. Refer to the Risk Disclosure Statement and Risk Fact Sheet.

IG Asia Pte Ltd (Co.Reg.No. 200510021K) is regulated by the Monetary Authority of Singapore and holds a capital markets services licence for dealing in capital markets products that are over-the-counter derivatives contracts and is an exempt financial adviser.

IG provides an execution-only service. The information in this advertisement does not contain (and should not be construed as containing) investment advice or an investment recommendation, 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. You should consider your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

The information on this site is not directed at residents of the United States or Belgium 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.

This advertisement has not been reviewed by the Monetary Authority of Singapore.