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

Indices fell back at the end of last week, but some buying has been seen early on in the session.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2018-11-12T10:00:48+0000

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FTSE 100 starts off in better form

The FTSE 100 has recovered from its weakness, with buyers coming in below 7100. If the price can now push on above 7200 we may have come through the consolidation phase of the past week or so, as the index digested the gains made from the October low.

Further upside targets 7300 and trendline resistance from the August highs. A move back to the 7000 lows of last week may find buyers, but a close below here might suggest that the lows of October will be retested.

FTSE 100 chart

FTSE 100 chart

FTSE 100 chart

DAX moves higher in early trading

Here too the DAX has recovered from its mixed week, having fallen back from the highs of around 11,670, but finding buyers around 11,420.

Further gains will target the highs of last week, with a break above here confirming the bullish view, suggesting that the index is ready to push higher. From here the October highs around 11,860 come into play, and then the 12,100 area and trendline resistance from the June highs. A close below 11,400 would suggest that the sellers are back in charge.

DAX chart

DAX chart

DAX chart

S&P 500 attempts to recover losses

Thursday and Friday saw the S&P 500 fall back from around 2820, where the mid-October bounce faltered.

Given the size of the move from the October lows (more than 8% from the October lows to the November high) this is not necessarily bearish, although it will be important to watch how the price behaves around here. A recovery from the Friday lows is underway, but a close above 2830 is needed to suggest that resistance has been breached. A close back below 2750 would indicate that further losses are likely.

S&P 500 chart

S&P 500 chart

S&P 500 chart

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