CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

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

Indices have managed to hold their ground of late, with both the FTSE 100 and DAX having enjoyed two weeks of gains.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2018-04-09T09:49:20+0100

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FTSE 100 extends gains into third week

After falling to its lowest level since December 2016, the FTSE 100 has staged an impressive recovery, fighting hard to hold above 7000 and rallying for the past two weeks.

The move back above 7127 is an encouraging sign, and if we can hold these levels then the possibility of a move back towards 7400 and higher increases. A drop back below 7100 would be a bearish sign, raising the prospect of a retest of the lows around 6800.

FTSE 100 chart

FTSE 100 chart

FTSE 100 chart

DAX aims for further gains

The DAX has found a bottom around 11,700 so far this year, and while it has yet to clear the zone of resistance from 12,400-12,600, the index has posted a strong bounce from its lows.

If the momentum can be sustained, and if the index can clear 12,600, then a steady push back above 13,000 could be on the cards. Alternately, a loss of momentum would suggest a move back towards 11,700, and if this breaks things could get quite ugly.

DAX chart

DAX chart

DAX chart

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S&P 500 hopes for rally after tough week

Risk appetite here has lived and died on trade war rhetoric. Last week for the S&P 500 saw a see-saw week that, overall, provided little clue for market direction.

However, the fact that the index has not yet retested the February low at 2530, and created a higher low at 2553, provides some hope. A possible downtrend from the all-time high and the March high could see the index rally to 2750 before encountering trendline resistance. Near-term support lies at 2553 and then 2530.

US 500 chart

US 500 chart

US 500 chart

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This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Clients can lose more than they deposit. All trading involves risk.

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