SP500, DAX40 and FTSE100 price forecasts 13 July 2023
The SP500 is leading indices the DAX40 and FTSE100 higher, following better than expected CPI inflation data.
SP500 breaks short term high
The S&P500, after forming another bullish reversal to end a shallow pullback (circled black), is continuing its longer-term uptrend. After having taking out the near term high, 4510 becomes the next upside resistance target. A close above this level would consider historical resistance at 4630 as a further upside resistance target.
The price trading well above the 200-day simple moving average (200MA) (blue line) continues to confirm the longer-term uptrend, although we are now again moving deep within overbought territory in the near term. Traders who are long might consider targeting the 4510 level while trailing their stop to a close below a one day low.
Traders not already long might prefer to wait for the price to consolidate or pullback from overbought territory before looking for new long positions into the index.
DAX40 targeting range resistance
The DAX40 remains in a long-term uptrend and short to medium term consolidation. The long-term uptrend is gauged by the price continuing to trade above the 200MA, which continues to suggest keeping a long bias to trades.
In the near term we have seen a bullish price reversal off the 15485-support level and break back above the 15715-resistance level. Range resistance at 16330 is the upside resistance target from the move, and traders who are long might consider trailing their respective stop loss levels to a close below a one day low.
FTSE100 rebounds through resistance
The FTSE100 remains in a long-term sideways trend as we see the price having whipsawed back and forth through the 200MA.
In the short term we have seen a false break of the 7285 level and reversal off the intraday low at 7200. The rebound from oversold territory now sees the price trading at the 7410-resistance level.
A close above this level would target 7560. In this scenario a close below the mid-point of the preceding long bodied candle might be used as a stop loss indication for the trade.
A reversal off the 7410 level would instead target a move back towards support at 7285 once again. In this scenario, a close above the reversal high might be used as a stop loss indication for the trade.
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