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 100, DAX and S&P 500

The rally off the lows from earlier in the week has reached a crucial point. Will the bulls prevail or will the bears take charge once more?

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2017-08-31T09:33:41+0100

DAX figure

Source: Bloomberg

FTSE 100 breaks through 7300 support zone

The FTSE 100 has bounced off the 7300 support zone, but now it needs to push on above 7440. A turn lower below 7400 provides another potential shorting opportunity, with an initial move down to 7300 and then potentially lower.

A close below 7294 would create a new lower low, while a failure to push on above 7400 creates a fresh lower high, a bearish development.

FTSE 100 chart

FTSE 100 chart

FTSE 100 chart

DAX struggles to move above 12,100

So far this morning a push above 12,100 has been defeated and if this marks the point where a new turn lower begins for the DAX, then we look for a move to 11,900, the key support area, and then 11,695 and 11,426 come into play.

We need to see a move above 12,200 to have a more bullish outlook here, otherwise further losses should be expected.

DAX chart

DAX chart

DAX chart

S&P 500 stuck below 2460

The bounce from the lows of the week has carried the S&P 500 past the highs of the past two weeks. However, for now the index is stuck below 2460.

A turn lower from here would represent a new shorting opportunity, with a possible move back down to 2420. Further gains from here are likely to run into resistance around 2475 and then back to 2490, the all-time high.

S&P 500 chart

S&P 500 chart

S&P 500 chart

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