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 S&P 500

The week has started with gains, with the end of the month and the quarter potentially providing bullish momentum.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2017-06-26T10:36:19+0100

German Stock Exchange

Source: Bloomberg

FTSE 100 – a new bounce in the making?

Once again the FTSE dipped below 7400, and once again the buyers came out in force to defend the area. Now we see if it can definitively break the descending trendline from the highs earlier in the month. It tried a week ago, and then failed, but perhaps a second time will work out better.

The stubborn refusal to let 7400 go adds force to the idea that a new bounce is in the making. A daily close below 7400 is needed to put a more bearish spin on things.

FTSE 100 chart

FTSE 100 chart

FTSE 100 chart

DAX another run at the 12,881 – 12,950 area is likely

The daily chart continues to show the ongoing consolidation for the DAX, but the series of higher lows witnessed over the past month or so still points towards bullish momentum.

Now the index looks to be making another run at the 12,881 – 12,950 area, where it has run out of steam since the end of May. Bears would need to break the rising trend of higher lows, which would suggest a close below 12,605 is needed to raise the prospect of a longer-term decline.

DAX chart

DAX chart

DAX chart

S&P 500 a close below the latter would be a sign of weakness

Bulls have had a hard time breaking out of the 2450 zone but it looks to be making another run at it. Over the past two weeks, 2430 and then 2420 provided good support in the S&P 500.

We would need to see a close below the latter to suggest more weakness is likely.

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.