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 FTSE 100 continues its divergence, while the DAX is trying to push through a key resistance zone and the S&P 500 is aiming to move back to recent highs.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2018-08-15T09:41:38+0100

Video poster image

FTSE 100 suffering a mixed morning

The FTSE 100 has pushed lower in early trading, having dropped below the 50-day simple moving average (SMA) at 7657 earlier in the week.

Yesterday’s low at 7598 is the first area to watch, and then below this the 7550 zone is possible support, followed by 7490. This latter level marks the bottom end of the range in which the index has traded since mid-June, and a close below this would mark a bearish development. A push higher targets 7675, and then on to 7800, the top end of the index’s trading range.

FTSE 100 chart

FTSE 100 chart

FTSE 100 chart

DAX bulls maintain control

A rebound from rising trendline support supports a bullish thesis, but the DAX is having trouble breaking through the zone around 12,440.

A push above here would open the way to 12,700 and trendline resistance from the June high, and from here 12,900 comes into play. A drop back would find support at the post-March rising trendline, but if the price drops below 12,292 then the 12,106 low from late June comes into play.

DAX chart

DAX chart

DAX chart

S&P 500 buoyed by rising support

The S&P 500 continues to hold a rising trendline from the June lows, having bounced from support on Monday.

A push above 2845 would target last week’s high at 2863, and from here the all-time high at 2877 comes into play. A break below trendline support would suggest a move back to 2800, where firm support was found in July and in early August.

S&P 500 chart

S&P 500 chart

S&P 500 chart

IGA, may distribute information/research produced by its respective foreign marketing partners 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.

This information/research prepared by IGA or IG Group is intended for general circulation. 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 or 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. In addition to the disclaimer above, 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.

See important Research Disclaimer.

Find articles by writer

Disclaimer:

All forms of investments carry risks and trading CFDs may not be suitable for everyone. CFDs are leveraged instruments and can result in losses that exceed deposits, so please ensure that you fully understand, and are aware of, the risks and costs involved. Refer to the Risk Disclosure Statement and Risk Fact Sheet.

IG Asia Pte Ltd (Co.Reg.No. 200510021K) is regulated by the Monetary Authority of Singapore and holds a capital markets services licence for dealing in capital markets products that are over-the-counter derivatives contracts and is an exempt financial adviser.

IG provides an execution-only service. The information in this advertisement does not contain (and should not be construed as containing) investment advice or an investment recommendation, 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. You should consider your specific investment objectives, financial situation or 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.

The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

This advertisement has not been reviewed by the Monetary Authority of Singapore.