FTSE 100, DAX and S&P 500 go firmly into reverse
Indices have taken fright at the spread of the coronavirus, moving sharply lower in early trading after gaping down overnight.
FTSE 100 renews its move lower
The FTSE 100 has bid ‘hello’ to rising trendline support, gapping down on the open and encountering the post-December 2018 line of support that has held three times in recent months (September, December and January).
If this is broken then 7230 comes into view, and then 7130 and 7000 are areas of possible support. Both the daily stochastics and the moving average convergence/divergence (MACD) have rolled over, suggesting the sellers remain in control.
DAX finally moves to the downside
The DAX has finally joined in the general move lower, having fought to hold above 13,600 over the past month. Further losses below possible support around 13,200 target 12,954 and then the 200-day simple moving average (SMA) at 12,650.
This last would also see the post-December 2018 rising trendline tested for the first time since August. As with the FTSE 100, momentum indicators such as stochastics and MACD have turned negative, while we will need to see the price move back above 13,500 to begin to provide a more near-term bullish impression.
S&P 500 drops sharply at start of new week
This morning’s gap lower has carried the S&P 500 back to the 50-day SMA (3284) and below.
Further declines test the area of support around 3210 (blue rectangle), which was tested at both the beginning and end of January. Dips into this area might see buyers emerge, while below this the post-December 2018 rising trendline comes into play, possibly around 3200. The price has moved in a straight line from last Thursday’s highs, so an intraday rebound might see fresh selling pressure, with a move above 3330 needed to close the overnight gap.
The information 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 Bank S.A. 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 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. See full non-independent research disclaimer.
React to volatility on commodity markets
Trade commodity futures, as well as 27 commodity markets with no fixed expiries.
- Wide range of popular and niche metals, energies and softs
- Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
- View continuous charting, backdated for up to five years
See opportunity on a commodity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on a commodity?
Don’t miss your chance. Upgrade to a live account to take advantage.
- Analyse and deal seamlessly on fast, intuitive charts
- Get spreads from just 0.3 points on Spot Gold
- See and react to breaking news in-platform
See opportunity on a commodity?
Don’t miss your chance. Log in to take your position.
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.
