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.

S&P 500, Nasdaq 100, DAX 40, and SA40 indices forming bullish price reversals?

Major indices the S&P 500, Nasdaq 100, DAX 40 and SA40 have all started to give some technical indication that a change in their respective price trends could be nearing.

Major indices the S&P 500, Nasdaq 100, DAX 40 and SA40 have all started to give some technical indication that a change in their respective price trends could be nearing.

S&P 500 – double bottom testing breakout

The S&P 500 index is currently testing the 4095 resistance level. A close above this level would confirm a double bottom (‘W’) reversal pattern. The reversal pattern would suggest a change in directional trend from down to up.

Should the pattern confirm with an upside breakout, 4300 becomes the initial target from the move, while a close below the 4000 level could be used as a stop-loss indication for the trade.

Nasdaq 100 – double bottom

The Nasdaq 100 (US Tech) also looks to be forming a ‘W’ shaped reversal pattern. The pattern is, however, less evolved than that noted on the S&P500.

A close above 12570 would confirm the pattern, in which case, 13535 would become the initial upside resistance target from the move.

DAX 40

The DAX 40 (Germany 40) is currently testing the breakout level of an inverse head and shoulders reversal pattern. The pattern also suggests a short-term change in directional trend from down to up.

A close above the neckline of the pattern (as is currently trading) would put the pattern into play. In this scenario, 14820 would become the initial upside resistance target from the move, while a close below either the 13850 or 13690 level (depending on appetite for risk) could be used as a stop-loss indication for the trade.

South Africa 40 Cash Index

Our criteria for a bullish price reversal on the South Africa 40 Cash Index is close to being realised.

The index has now broken through trendline resistance and is now testing an upside break of the 63650 level. A close above 63650 would confirm the upside breakout from a double bottom (‘W’) reversal pattern. The ‘W’ reversal is a suggestion that the market has now stopped making lower lows and is now starting to make higher highs i.e. a change in market direction.

Should the close above 63650 confirm, 64555 becomes the initial target from the move. A close above this level would further target 65600 as the next resistance level. In this scenario (should it manifest), traders might consider using a close below today’s (27 May) intraday low at 62900 as a stop-loss indication for the trade.

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.

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. Please see important Research Disclaimer.

Please also note that 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.

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

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

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.