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

The week has begun in strong form, with gains for indices across the board.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2018-08-20T09:54:53+0100

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FTSE 100 surges from range support

The FTSE 100's bounce from the 7490 level/200-day simple moving average (SMA) of 7487 that we saw last week is still intact.

We need to see the price push on above the 50-day SMA (currently 7645), and then move back above 7700 to challenge recent highs around 7800. Even then the index is still within the 7500-7800 range until we get a daily close outside this.

FTSE 100 price chart

FTSE 100 price chart

FTSE 100 price chart

Bargain hunters drive DAX higher

The DAX continues its recovery from the drubbing it received last week. We can see that 12,100 has held as support and now the 12,400 area comes in as a potential target.

From here, trendline resistance from the June highs comes into play around 12,700. A drop back would target support around 12,100, with a close below this suggesting a deeper retracement towards 11,700.

DAX price chart

DAX price chart

DAX price chart

S&P 500 back on track to new highs

Having bounced from 2800, the S&P 500 has continued to gain, with 2864 and then 2877 as the next areas to watch. A move above the latter will mean the index is at new record highs.

A decline will target the 2800 area and then the 50-day SMA at 2792. Below this, any retracement that holds above 2700 is another higher low within the broader uptrend from the end of May.

S&P 500 price chart

S&P 500 price chart

S&P 500 price chart

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