FTSE 100, DAX and S&P 500 lifted by drug news

Indices have been supported by news of a possible drug success against coronavirus, which has helped improve the technical picture.

FTSE 100 falters at 5800

The FTSE 100 surged from the lows of the week, potentially reviving the more bullish view.

However, if the price is at risk of creating a lower high at 5800, which might be the cue the sellers are waiting for. If the price does drop back, bulls need to see the price either create a higher low above 5550 or at least hold the Wednesday low at 5530. Further gains from 5800 head towards 5950.

DAX recovery dispels potential bearishness

The DAX bounced from 10,200, and now the buyers need to push on above 10,800 to avoid the possibility of a lower high around 10,600.

A move above 10,800 targets the 50-day simple moving average (SMA) at 11,117, and then the gap down from the beginning of March, which lies around 11,250. If this is taken out then the view becomes more optimistic. The sellers will need to push this below 10,200 to provide a more bearish view.

S&P 500 uptrend goes on

While the FTSE 100 and DAX had been looking less bullish this week, the S&P 500 has stayed the course.

The previous two sessions saw the price hold 2765 as support and, with further gains overnight, we have a higher high that reinforces the uptrend from the March lows. So far, there is no sign of a sustained turn lower, with further dips still being buying opportunities.

IGA, may distribute information/research produced by its respective foreign affiliates 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.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. 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, and 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.

Please see important Research Disclaimer.

Take a position on indices

Deal on the world’s major stock indices today.

  • Trade the lowest Wall Street spreads on the market
  • 1-point spread on the FTSE 100 and Germany 40
  • The only provider to offer 24-hour pricing

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.