News and Trade Ideas (Indices)

[MongiIG]

FTSE, DAX, and Dow attempt to regain lost ground

The FTSE, DAX, and Dow regain ground in early trade, but resistance lies ahead for these heavily-hit indices.

Source: Bloomberg

 Joshua Mahony | Senior Market Analyst, London | Publication date: Monday 06 December 2021 

FTSE 100 pushing back towards near-term resistance

The FTSE 100 is on the rise this morning, with the index kicking off the week on a positive footing.

This move looks to take us back into the confluence of Fibonacci and horizontal resistance around 7180. There is still a risk that we remain within this consolidation phase until markets get more Omicron data which will also provide greater confidence in the central bank outlook.

Nonetheless, there is a strong likeliness that we do ultimately recover if the Omicron variant proves to be mild enough to avoid another round of lockdowns and negative growth. Look out for a rise through this resistance zone to build confidence of a deeper push higher. However, we will ultimately need to overcome 7313 to end this recent pattern of lower highs.

That said, from a wider perspective, this recent selloff has taken us into the 76.4% Fibonacci support level at 6964, with a decline through that low bringing a signal that we could be on the cusp of a wider bearish reversal.

Source: ProRealTime

DAX showing tentative signs of strength after recent selloff

The DAX has been hit hard as rising German Covid-19 cases spark expectation of lockdowns and economic weakness.

Nonetheless, we are seeing some signs of positivity, with the recent rise through 15465 ending the intraday trend of lower highs. That points towards a heightened chance that this latest pullback is a retracement, hence the respect of the 76.4% level at 15057.

With the index moving higher since, it makes sense to expect a move higher from here. A break back below the 14917-14813 would ultimately be required to bring expectation of a wider bearish reversal phase.

Source: ProRealTime

Dow gaps higher, but questions remain for bulls

The Dow has managed to gap higher in early trade, with price pushing back towards the near-term resistance level of 35004. That swing-high is important in signalling the likely end of the current intraday bearish trend.

From a wider perspective, we would need to see price break below the 33531 to signal the beginning of a wider bearish phase. Until then, the index is expected to reverse higher once again before long.

A push through 35004 would be a crucial signal that such a move is taking shape.

Source: ProRealTime

[MongiIG]

Indices surging in early trading

Stock markets are staging an impressive rebound, rapidly recovering ground lost in late November.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Tuesday 07 December 2021

FTSE 100

The FTSE 100 is firmly in rally mode, having surged from 7000 over the past week.

Crucially it has recovered all the losses of late November, and is now testing the 7310 swing-high from 25 November. A close above this level would be a bullish development, although given the size of the move over the past week some intraday weakness would not be surprising.

Nonetheless, further gains above 7300 target 7400.

Source: ProRealTime

DAX

The consolidation around 15,200 last week has given way to gains, with the price moving back to the 50-day simple moving average (SMA) at 15,638, having pushed above 15,460, which had held back gains over the past week.

The next target is 15,790/15,800, and then back to the November peak at 16,300.

Source: ProRealTime

S&P 500

The Dow led the way higher yesterday but the S&P 500 is doing its best to catch up, moving back above the 50-day SMA (4559) and then on towards trendline resistance from the recent peak.

Intraday weakness should be a buying opportunity unless we see a reversal below 4560.

Source: ProRealTime

[MongiIG]

FTSE, DAX, and Dow continue their bullish recovery phase

The FTSE, DAX, and Dow drive higher, with wider uptrend likely to be back in play for stocks.

Source: Bloomberg

 Joshua Mahony | Senior Market Analyst, London | Publication date: Wednesday 08 December 2021

FTSE 100 drives up through resistance as bulls gain dominance once more

The FTSE 100 is back on the front foot following a period of gains that took us up through the 7314 resistance level yesterday.

The long-term uptrend does bring expectations of another rally up through the 7405 peak before long, with any near-term weakness deemed a retracement within an upwards move.

A decline through that same 7314 support level would be required to signal a period of impending downside retracement.

Source: ProRealTime

DAX pauses after period of sharp gains

The DAX has been enjoying a bout of sharp gains, with the index pushing upwards throughout the beginning of this week thus far.

While price is currently pausing, it is likely that we see another move higher before long. As such, a bullish view holds unless price breaks back below the 15085 support level.

Source: ProRealTime

Dow rebounds after deep retracement

The Dow has similarly been on a rampant surge higher over the course of this week thus far, with the index pushing up towards the 76.4% Fibonacci resistance level.

Nonetheless, this is not deemed a retracement per se, with further upside looking likely to push the index towards the prior highs.

For now, we are seeing price stabilise somewhat in early trade, but any downside would be deemed short-term in nature unless price breaks back below the 33956 support level.

Source: ProRealTime

[MongiIG]

FTSE, DAX, and Dow pause within recent recovery phase

The FTSE, DAX, and Dow ease back, but wider uptrend points towards another bout of gains to come.

Source: Bloomberg

 Joshua Mahony | Senior Market Analyst, London | Publication date: Thursday 09 December 2021

FTSE 100 manages to push back towards pandemic high

The FTSE 100 has been pushing higher over the course of the week, with price moving towards the 7405 resistance level established in November. A push up through that level brings about a bullish continuation confirmation signal.

Short-term pullbacks look likely to represent a buying opportunity for now, with this latest surge looking like part of the wider bullish trend that should lead to a push through 7405 before long.

Source: ProRealTime

DAX easing back after latest surge

The DAX has been drifting lower since Tuesday's peak of 15875, with price starting to weaken once again this morning.

From a wider perspective, the bullish trend does point towards another move higher before long, with the current decline deemed a retracement before we move higher once again.

A break below 15085 would be required to negate that view.

Source: ProRealTime

Dow starts to weaken from resistance

The Dow has been easing back from resistance over the past 24-hours, with the index taking a breather after reaching the 35954 resistance level.

Once again, it looks likely we will see another push higher before long, with near-term downside deemed a retracement before we head higher once again.

Source: ProRealTime

[MongiIG]

FTSE 100, DAX and S&P 500 fight to continue rally

Gains in indices have stalled, although the rally from last Friday does not look to be at an end just yet.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Friday 10 December 2021

FTSE 100

After the sharp rally of the past week, the FTSE 100 has encountered some weakness, edging back from 7350.

Given the scale and rapidity of the bounce this is not too concerning for longs yet, but further losses below 7200 would begin to change this situation.

Short-term trendline support comes into play around 7280, and could help provide the reason for a bounce back towards the recent peak.

Source: ProRealTime

DAX

The index continues to edge back from the highs of Tuesday’s session. It is heading back towards the 200-day simple moving average (SMA), where support may develop.

A move back below 15,400 would be regarded as bearish and open the way back towards 15,000.

Source: ProRealTime

S&P 500

A modest retracement here leaves the overall bounce firmly intact, with a potential test of previous trendline resistance now as potential support around 4630.

A move below 4600 would certainly provide more fuel for the bearish view. Any revival above 4700 puts the buyers back in charge.

Source: ProRealTime

[MongiIG]

FTSE 100, DAX and Dow move higher

Indices have begun the week with gains, building on the strong start to the month so far.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Monday 13 December 2021

FTSE 100

Having managed to avoid further losses on Friday, the FTSE 100 is now testing trendline support from the November low.

Given how steep this trendline is a break below it may not be a disaster from a bullish perspective, but might see the 7230 area tested.

A revived bounce targets 7350 and higher.

Source: ProRealTime

DAX

The index managed to bounce on Friday, and is now looking to recover last week’s highs above 15,800. This would then put it on course to create new higher highs, reinforcing the uptrend.

Sellers will need to push the price back below Friday’s low of 15,524 to renew the bearish view.

Source: ProRealTime

Dow

The price finds itself some 2000 points higher from the beginning of the month. For now it shows no sign of stopping, with 36,569 now in prospect, the record high from early November.

Sellers will want to see a reversal back below 35,470 to suggest some near-term weakness is at hand. For now, however, intraday weakness should see further buyers enter the fray.

Source: ProRealTime

[MongiIG]

Indices struggle in early trading

Despite some signs of a recovery overnight, indices remain under pressure ahead of the FOMC. Video

 

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Tuesday 14 December 2021

FTSE 100

The FTSE 100 is attempting to revive its fortunes after three sessions of losses, attempting to find support at 7230, previously resistance during the summer.

In addition it is holding the 50-day simple moving average (SMA) for now, providing some additional short-term relief.

As yet, however, a renewed push higher is still lacking, but a rally above 7300 would help to build a more bullish view.

Source: ProRealTime

DAX

Yesterday’s strong start ebbed away throughout the rest of the session, but the DAX has stabilised again, holding Monday’s lows.

We look for a recovery of 15,800 to help put the December bounce back on track, while a more bearish, or at least neutral view, builds with a reversal below 15,500 and the 200-day SMA.

Source: ProRealTime

S&P 500

The S&P 500 retreated from yesterday’s highs but overall it remains in strong form, consolidating after the leap higher earlier in the month.

Only a move back below 4600 would be firmly bearish, but some volatility may well persist until after the Federal Reserve meeting this week.

Having bounced from 4500 the uptrend is still firmly intact.

Source: ProRealTime

[MongiIG]

Indices still unsteady ahead of FOMC meeting

Although downside has been relatively limited, indices remain under pressure.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Wednesday 15 December 2021 

FTSE 100

The FTSE 100 continues to retreat, opening back below the 50-day simple moving average (SMA) at 7235.

It is still firmly up on the month, but sellers have been in charge over the past week and show no sign of letting go yet.

Additional downside comes into play towards the 100-day SMA at 7165, and then down to 7073 and the 200-day SMA.

Source: ProRealTime

DAX

Trendline resistance from the November peak has held back progress twice this week, with yesterday seeing the continuation of Monday’s reversal.

The sellers remain in charge, and it would take a rally back above 15,700 to reverse the move, putting the price above trendline resistance.

Source: ProRealTime

S&P 500

Today’s Federal Reserve decision has kept markets in check all week, with the S&P 500 off sharply over the past two sessions.

Some initial downside in early trading comes as daily stochastics turn negative, bolstering a short-term bearish view.

The rising 50-day SMA at 4599 is the first target, and then on towards the 4500 area, where the price bounced in December.

Source: ProRealTime

[MongiIG]

Indices look for new gains as new year begins in earnest

Indices are looking strong as the new year gets underway, with US markets bolstered by gains in tech names.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Tuesday 04 January 2022 

FTSE

The FTSE 100 began the year by rising above last year’s high at 7461 and is trading at levels last seen in February 2020, with that month’s high at 7549 being in view.

Short-term pullbacks towards the 7405/7379 November and early December highs look likely to represent a buying opportunity for now, with this latest surge looking like part of the wider bullish trend.

Medium-term upside pressure should be maintained while the index remains above the 7355 late December low.

Source: ProRealTime

DAX

The DAX's strong start to the year yesterday ebbed away early on in today’s session, but the December high at 15976 is likely to act as support if a further slip were to occur. Further down the one month support line can be seen at 15932.

A rise above today’s high at 16104 is needed for the November high at 16298 to be back in the limelight.

Source: ProRealTime

S&P 500

The S&P 500 is seen flirting with last year’s December high at 4799. A rise above this level and the psychological 4800 mark is needed for the 161.8% Fibonacci extension of the December rise, projected higher from the December 20 low, at 4926 to be engaged.

The short-term uptrend remains intact while the contract stays above yesterday’s 4748 intraday low.

Source: ProRealTime

[MongiIG]

FTSE 100, DAX and Dow remain on a positive footing

Indices continue to make headway, building on their strong start to the year.

Source: Bloomberg

IG Analyst | Publication date: Wednesday 05 January 2022 

FTSE 100 

Yesterday the FTSE 100 began the year by rising to 7523, just shy of the February 2020 high at 7549 which remains in focus. Further up sit the July 2019 high at 7622 and the pre-pandemic December 2019 and January 2020 highs at 7680/7690.

Minor support comes in around last year’s high at 7461 and more significant support can be seen between the 7405/7379 November and early December highs. While this support zone underpins, further upside is likely to be witnessed in the days to come.

Medium-term upside pressure should be maintained while the index remains above the 7355 late December low.    

Source: ProRealTime

DAX

The uptrend remains firmly intact for the DAX but a rise above yesterday’s high at 16203 is needed for the November high at 16298 to be engaged. However, around it the index is likely to stall, at least short-term.

The one-month support line and December high at 16008/15976 are expected to act as support, if revisited at all.

Further down the early December high can be spotted at 15872 and also represents potential support. 

Source: ProRealTime

DOW 

The Dow continues to trade at new all-time highs and has so far risen to 36920, close to the 36945/36990 area which consists of two 100% price extensions. These are the October to November advance, projected higher from the December low, and the early-to-mid-December rise, projected higher from the December 20 low.

Such a confluence of price targets often acts as a magnet for the market.  An immediate bullish outlook should remain in play while the one-month support line at 36420 underpins. 

Source: ProRealTime

[MongiIG]

FTSE 100, DAX and Nasdaq give back some of their recent gains

The FOMC meeting prompted a drop across equity markets, with the Nasdaq 100 particularly hard hit.

Source: Bloomberg

IG Analyst | Publication date: Thursday 06 January 2022 

FTSE 100

Yesterday the FTSE 100 rose to this year’s high to date at 7529, close to the February 2020 high at 7549 which we mentioned a couple of days ago, before coming off and slipping through its one-month support line.

Since yesterday’s high has also been accompanied by negative divergence on the daily RSI, further slips are likely to be seen this week. The 7379 November high and 7355 late December low may soon be reached.

Whilst the latter underpins, the uptrend remains in play, however. If not, a deeper retracement to the 7314 late November high may be on the cards.

Yesterday’s high at 7529 will need to be bettered for the February 2020 high at 7549 to be back in contention. Further up sit the July 2019 high at 7622 and the pre-pandemic December 2019 and January 2020 highs at 7680/7690.  

Source: ProRealTime

DAX

Having practically reached the November all-time high at 16298, the DAX has been giving back much of yesterday’s gains and overnight slipped through the one-month support line to around the 15976 late December high which offered support.

Failure at today’s intraday low at 15965 would probably lead to the early December high at 15872 coming back into the frame. Below it lies more significant support at the 15800/15771 mid-December highs and December 31 low. While this support zone holds the overall bullish picture remains intact. 

This year’s high to date and the November all-time peak at 16288/16298 will need to be overcome for the minor psychological 17000 mark to be next in line. 

Source: ProRealTime

NASDAQ 100 

The Nasdaq has tested its 2020-2022 uptrend line at 15633 this week which so far offers support. As long as this remains the case there is a good chance this latest pullback will ultimately resolve with another push higher. 

If it were to be fallen through, however, the December trough at 15502 would be eyed, a drop through which would have bearish implications. 

Source: ProRealTime

[MongiIG]

FTSE 100, DAX and Dow continue to struggle

Indices are still facing more declines as investor sentiment turns cautious in the wake of FOMC minutes earlier this week.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Friday 07 January 2022 

FTSE 100

The FTSE 100 continues to erode some of the gains made earlier in the week, and while it remains within the upward channel of the past three weeks a drop below 7420 would open the way to 7350 and the low from 30 December. The bearish view would be given further strength with move to the 50-day simple moving average (SMA) at 7298.

Buyers will want to see a reversal back above 7450 that could bring a move back to 7500 or even 7550 into view.

Source: ProRealTime

DAX

Further losses for the DAX today have reinforced the bearish view which could now result in a test of 15,800, a key area of resistance in the middle of December. Below this we would look to the 200-day SMA (currently 15,590) as possible support.

A revival from here would put the 16,200 level into view, and beyond this on to the November high at 16,284.

Source: ProRealTime

Dow

The losses have slowed here for now as it nears the 36,200 support zone, one that formed resistance in November and December.

A drop below this could clear the way for a much broader decline that could see the 50-day SMA tested once again, although a drop below the mid-December low around 34,680 would be needed to open a more medium-term bearish view.

Source: ProRealTime

[MongiIG]

FTSE 100, DAX and Dow begin the new week on a positive footing

The new week has got off to a better start for indices, which took some heavy losses last week.

Source: Bloomberg

IG Analyst | Publication date: Monday 10 January 2022 

The FTSE 100 is closing in on its high to date at 7530 

The FTSE 100 continues its advance and has this year’s high to date at 7530, made close to the February 2020 high at 7549, in its sights. Further up beckon the July 2019 high at 7622 and the pre-pandemic December 2019 and January 2020 highs at 7680/7690.

Immediate upside pressure should be maintained while the index stays above the 7462 to 7461 December high and two-month uptrend line. 

Further support can be spotted between the 7379 November high and 7355 late December low. Whilst the latter underpins, the uptrend remains intact.  

Source: ProRealTime

The DAX is heading back up again 

The DAX index is beginning this week on a positive footing and tries to resume its uptrend. It targets the 16288 to 16298 current January and November all-time highs.

On the way there lies minor resistance between the early November high and 19 November low at 16089 to 16091.  Only failure at last week’s low at 15862 would likley engage significant support at the 15800 to 15771 mid-December highs and December 31 low.

While this support zone holds, however, the overall bullish picture remains valid. 

Source: ProRealTime

The Dow is trying to recover from minor support 

The Dow is striving to recover from minor support seen between the mid-December high and the 23 December high at 36129 to 36063 and targets the 36569 November peak. Above it sits the December high at 36685 and also the current January peak at 36955. 

Were a slip through the 36063 minor support to be witnessed, however, the 27 December low at 35877 would be in focus as well as the 55-day moving average at 35796. 

Source: ProRealTime

[MongiIG]

Indices see a strong recovery from Monday’s lows

The sharp losses of Monday have been mostly reversed, and indices seem in more bullish form this morning.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Tuesday 11 January 2022 

FTSE 100

A potential wedge formation has developed, with the possibility that this will lead to heightened volatility, with a breakout from this narrowing range.

Overall the recent higher lows intraday have helped to support the more positive view, and it would require a drop below 7400 to suggest that the sellers have regained control in the short term.

On the upside, lower daily highs have dampened the bullish view for the FTSE 100, but a move above 7500 would be regarded as a positive development and would open the way to 7550 and higher.

Source: ProRealTime

DAX

The index is enjoying a continued bounce after yesterday’s choppy session. The price fell back from Monday’s highs but then rebounded from the lows of the session, and the price has risen further today. This break of the run of lower daily highs may persist today, and would open the way for a move back above 16,000, towards 16,200 and higher.

A more bearish view would require a reversal back below the 50-day simple moving average (SMA) of 15,809 and then on below Monday’s low around 15,720, opening the way to more downside, e.g. the 200-day SMA at 15,596.

Source: ProRealTime

S&P 500

The sellers seemed to have the day all sewn up yesterday, with the price slumping almost right back to the 20 December low. But the buyers have come storming back in, holding the price around the 50-day SMA (4681) and pointing towards a potential broader revival.

The higher low yesterday would confirm the uptrend of the past six weeks, and put the buyers firmly back in charge.

Source: ProRealTime

[MongiIG]

Indices look for more upside after Tuesday’s recovery

Both the FTSE 100 and the Dax are looking strong, while the S&P 500’s bounce from lows earlier in the week continues.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Wednesday 12 January 2022 

FTSE 100

The FTSE 100 has continued to rally, making headway above the 7500 level for the first time.

So far there is little sign of a bearish turn, with higher lows over the past few days. Trendline support has held the index in place and prevented any downside in the short-term.

The positive view remains in place unless we see a drop back below 7400.

Source: ProRealTime

DAX

Yesterday’s bounce off the 50-day simple moving average (SMA) has continued, and a move back towards 16,200 still seems likely.

Buyers have stepped up to arrest the downward move of early January, and so a reversal back below 15,800 would be needed to prompt a more bearish view for the DAX.

Source: ProRealTime

S&P 500

Two days of volatility appear to have resolved into a broader move higher, with the looming bearish view of Monday reversed by the bounce back above the 50-day SMA (4683).

A move back to 4800 would seem to be the next development for the S&P 500, assuming the buyers are able to retain control.

Source: ProRealTime

[MongiIG]

FTSE 100, DAX and Dow give back some of their recent gains in the wake of strong US CPI data

Indices are still strong, although some weakness in the aftermath of US CPI has been seen.

Source: Bloomberg

IG Analyst | Publication date: Thursday 13 January 2022

FTSE 100 retraces from two-year high following increased US inflationary pressure

Yesterday the FTSE 100 rose to a near two-year high at 7566, made slightly above the February 2020 high at 7549, before giving back some of its recent gains following mounting inflationary forces in the US economy. A further retracement lower thus cannot be ruled out today. 

Were a rise above 7566 to be witnessed, however, the July 2019 high at 7622 and the pre-pandemic December 2019 and January 2020 highs at 7680/7690 would be back in the picture.

Immediate upside pressure should be maintained while the index stays above the 7500 mark. Below it sit the two-month support line at 7477 and the December high at 7461. 

Source: ProRealTime

DAX looks vulnerable following candlestick Doji pattern

The DAX index began this week on a positive footing but failed to reach minor resistance seen between the early November high and 19 November low at 16089 to 16091. This, coupled with the fact that a daily candlestick Doji pattern was formed yesterday, may lead to another down leg. 

In Japanese, "doji" means blunder or mistake, referring to the rarity of an open and close price being exactly the same or close to one another. It denotes indecision and a slip through yesterday’s low of the pattern at 15953 would be short-term bearish and target the early December high at 15872, and also the two-month support line at 15846. 

Only a rise above yesterday’s high at 16080 would invalidate the candlestick pattern and put the November and early January highs at 16288 to 16299 back on the map. 

Source: ProRealTime

Dow slipping back towards support in the wake of strong US CPI data 

The Dow is likely to drop back to the 36129 12 December high today, a fall through which could lead to the 11 November low and 25 November high at 35954 to 35919 being in focus.

Further down stronger support can be made out between the two-month support line, 55-day simple moving average (SMA) and the current January low at 35820 to 35643. 

Only a rise above yesterday’s high at 36456 would negate the current short-term bearish bias and engage the 36569 November peak. Above it sits the December high at 36685 and also the current January peak at 36955. 

Source: ProRealTime

[MongiIG]

FTSE recovers as DAX and S&P 500 struggle

While the FTSE 100 is displaying some early strength, the Dax and S&P 500 have struggled.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Friday 14 January 2022 

FTSE 100

The FTSE 100 continues to make headway, recouping the losses seen yesterday, moving back above 7550 and continuing to target the pre-pandemic highs.

The next target to the upside is 7695, last seen in January 2020, with the summer 2019 highs near 7800 next in line. Overall the index remains firmly in an upward move, but a drop back below 7400 would provide some short-term weakness.

Source: ProRealTime

DAX

Here the index is still struggling to rebound from yesterday’s drop back below 16,000, but it continues to hold above the 50-day simple moving average (SMA) at 15,807. Monday’s low at 15724 has yet to be tested, which could develop a more short-term bearish view.

A move back above Wednesday and Thursday’s highs at 16,085 would open the way to another test of 16,200 and higher.

Source: ProRealTime

S&P 500

The drop back below the 50-day SMA (4683) yesterday seems to have put the buyers back in charge, although a move below 4650 and then below Monday’s low near 4580 would be needed for a more medium-term bearish view.

The lower high this week provides a near-term target for any rebound, moving to 4750 in the first instance, with trendline resistance from the late December peak coming into lay around 4700.

Source: ProRealTime

[MongiIG]

FTSE 100 remains strong, DAX and Dow subdued

While the FTSE 100 remains strong, the DAX and Dow look subdued above last week’s lows.

Source: Bloomberg

 

 

 

IG Analyst | Publication date: Monday 17 January 2022

FTSE 100 trades at near two-year highs

The FTSE 100 continues to trade at levels last seen in February 2020 whilst staying above that month’s high at 7549. The July 2019 high at 7622 and the pre-pandemic December 2019 and January 2020 highs at 7680 to 7690 continue to be targeted.

Immediate upside pressure should be maintained while the index stays above the 7530 to 7507 support area which consists of the early January high and the 14 January low.

Source: ProRealTime

Further sideways trading on the cards for DAX ahead of ZEW Economic Sentiment

The DAX index continues to oscillate around the 16000 mark, having last week been capped by minor resistance made up of the early November high and 19 November low at 16089 to 16091 whilst holding above the 14 January 15833 low and awaiting Tuesday’s German ZEW Economic sentiment data.

Only a rise above last week’s high at 16090 would push the November and early January highs at 16288 to 16299 to the fore, whereas a slip through 15833 would likely engage the 55-day simple moving average (SMA) and current January low at 15771 to 15725.

Source: ProRealTime

Dow remains fragile whilst hovering above recent lows

The Dow is expected to oscillate further around the 55-day SMA at 35783 today and may revisit the two-month uptrend line at 35690. Below it sits key support at this year’s lows to date at 35643 to 35639. Failure there would lead to the 29 November high at 35306 being next in line with the 200-day SMA at 35162 representing another potential downside target.

Only a rise above last week’s high at 36512 would negate the current short-term bearish bias and engage the 36569 November peak. Above it the December high can be spotted at 36685 and also the current January peak at 36955.

Source: ProRealTime

 

[MongiIG]

FTSE 100, DAX and S&P 500 fall back in opening trading

Indices have taken a sharp turn lower, with the DAX and S&P 500 in particular looking weak.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Tuesday 18 January 2022 

FTSE 100

Early trading has seen the FTSE 100 head back to trendline support, reversing gains of the previous two sessions. A move below 7500 would break trendline support and put the price below Friday’s low, and would open the way to a more short-term bearish view. This may bring the 50-day simple moving average (SMA), currently 7335),into view.

A bounce from the trendline would put this week’s highs into view, and then potentially suggest a move back towards 7700.

Source: ProRealTime

DAX

Initial trading has resulted in sharp losses for the index, pushing it to the 100-day SMA (15,683).

Crucially, the price is below the early December peak, and now the 200-day SMA at 15,613 comes into view. Trendline support from late November also beckons around the 200-day SMA.

Source: ProRealTime

S&P 500

The negative tone in this index continues with early losses as US markets return from their long weekend.

Trendline support from late November is currently being tested, with further support around 4580 possible.

Source: ProRealTime

[MongiIG]

FTSE 100, DAX and Dow drop further on surging bond yields

 

Source: Bloomberg

 | Writer, | Publication date: Wednesday 19 January 2022 

FTSE 100 forms Bearish Engulfing Day on candlestick chart

The FTSE 100 followed yesterday’s near two-year high at 7627 by closing below the previous day’s low, thus forming a Bearish Engulfing pattern on the daily candlestick chart which has been confirmed by this morning’s slide through yesterday’s low.

Together with the break out of the rising wedge pattern, which has been building since late November, the technical picture now has short-term bearish implications. The December high at 7461 is being targeted and on the way there minor psychological support can be encountered at the 7500 mark.

Only a currently unexpected bullish reversal and rise above this week’s high at 7627 would put the pre-pandemic December 2019 and January 2020 highs at 7680 to 7690 back in the frame.

Source: ProRealTime

DAX slips to new year-to-date low

Yesterday the DAX index slid through the early January low at 15725 and today nears the 50% retracement of the December-to-January advance at 15604 amidst rapidly rising US bond yields.

The next downside target is the area seen between the 1 December high and the 10 December low at 15527 to 15510, followed by the 61.8% Fibonacci retracement at 15442.

Minor resistance can be spotted at the 14 January low at 15833 and only a currently unexpected bullish trend reversal and rise above the last swing high at 16090 would void the current bearish outlook.

Source: ProRealTime

Dow drops to 200-day SMA

The Dow's fall through its early January lows at 35643 to 35639 on the back of the US 10-year Treasury topping 1.89% this week to its highest level in two years has taken it all the way down to the 200-day simple moving average (SMA) at 35168. The move indicates that investors are bracing for the possibility of a more aggressive tightening by the US Federal Reserve (Fed).

The next potential support levels come in at the 20 December low at 34663 and at the 26 November trough at 34494. While the index remains below the 55-day SMA at 35749 a bearish bias remains entrenched.

Source: ProRealTime

[MongiIG]

FTSE 100 rally has resumed while DAX and NASDAQ stabilise

FTSE 100 trades back at near 2-year highs while the DAX and NASDAQ try to stabilise.

Source: Bloomberg

IG Analyst | Publication date: Thursday 20 January 2022 

FTSE 100 continues its advance to the 7680 to 7690 target zone while above 7517

The FTSE 100 only very briefly corrected lower yesterday and is in the process of making a new near two-year high with the pre-pandemic December 2019 and January 2020 peaks at 7680 to 7690 being back in play. There we would expect the index to stall, at least in the short-term. Further up the July 2019 high can be spotted at 7730.

Immediate bullish pressure should be maintained while the futures contract remains above yesterday’s low at 7517 on a daily closing basis. This level would need to be slipped through for the view to be neutralised with the psychological 7500 mark and the December high at 7461 to be eyed.

Source: ProRealTime

DAX recovers from year-to-date low

Yesterday the DAX dipped to its current January low at 15625 as rising bond yields and the expectation of tighter monetary policy continued to push investors out of equities.

The index stabilised above the 50% retracement of the December-to-January advance at 15604 and is now seen heading back up towards the 7 December 15872 high as well as the one-month downtrend line at 15920. Further minor resistance can be encountered at the 15976 December high. Only a bullish trend reversal and rise above the last swing high at 16090 would void the currently still bearish bias.

Failure at yesterday’s 15625 low would engage the 1 December high and the 10 December low at 15527 to 15510, followed by the 61.8% Fibonacci retracement at 15442.

Source: ProRealTime

Nasdaq 100 tries to stabilise short-term near psychological mark

The Nasdaq dropped all the way to minor psychological support at the 15000 mark where it is trying to find interim support. Around this level the futures contract range traded for around a month during July and August of last year and as such may offer short-term support.

If yesterday’s low at 15007 were to be slipped through, however, we would have to allow for the July and October 2021 lows at 14452 to 14383 to be reached in the weeks to come.

The bears should remain in control while the contract stays below the one-month downtrend line at 15566. Below it is the 200-day simple moving average at 15314 which may also act as resistance.

Source: ProRealTime

 

[MongiIG]

Indices steady in early trading after fresh losses

A fresh set of declines for stocks in yesterday’s session maintains the overall risk-off move, even if a small bounce has taken place in the early part of today’s session.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Friday 21 January 2022 

FTSE 100

The FTSE 100 continues to retrace from recent highs, declining in the early part of today’s session after retreating yesterday.

The break of trendline support two days ago provided the bearish impulse, and 7400 and then the 50-day simple moving average (SMA) at 7346 could provide some potential support.

A recovery above 7580 would put the price back on an upward path and bring 7630 into view, along with the pre-pandemic highs at 7800.

Source: ProRealTime

DAX

A rebound yesterday was knocked back as US markets fell, dragging other indices with them.

For now the lows of today’s session and two previous sessions remain intact, so a move below 15,650 would be needed to develop a more bearish view.

A bounce from trendline support and then above the 50-day SMA at 15,781 would potentially mark a more bullish view for the DAX, although trendline resistance near 15,880 still potentially comes into play.

Source: ProRealTime

S&P 500

Yesterday’s fresh falls and early losses have taken the index back to the 200-day SMA (4439) for the first time since June 2020. Intraday rallies such as yesterday continue to be hit by selling strength, with no sign that has yet come to an end.

With the price now below the 4540 zone, further losses could develop, targeting down to 4300 in the event of a broader decline. A reversal back above 4560 is needed to provide a more short-term bullish view.

Source: ProRealTime

[MongiIG]

FTSE 100, DAX and Nasdaq at or close to major support ahead of FOMC

The new week has got off to a better start for indices, which took some heavy losses last week.

Source: Bloomberg

IG Analyst | Publication date: Monday 24 January 2022 

FTSE 100 gravitates towards 7405 to 7351 support zone

Despite this morning’s recovery, the FTSE 100 is likely to come further off last week’s near two-year high (7635) in the course of this week, having topped out slightly below the pre-pandemic December 2019 and January 2020 peaks at 7680 to 7690.

The November and early December highs, late December low and 55-day simple moving average (SMA) at 7405 to 7351 represent good support and may still be reached this week.

Minor resistance sits at the 7530 early December high and a daily chart close above this level would need to be seen for last week’s bearish view to be questioned.

Source: ProRealTime

DAX has major support at 15060 to 14917 in its sights

Last week the DAX slid to the 61.8% Fibonacci retracement of the December-to-January advance at 15442 amidst rapidly rising US bond yields and in the wake of weaker US equity markets.

Even though the futures contract stabilised slightly in overnight Asian trading it remains under pressure and may well slip to the next downside target and long-term key support area which can be found between the July, September, November and December lows at 15060 to 14917.

On the way down a minor support line can be spotted at 15304. Resistance comes in between the 29 December and 19 January lows at 15625 to 15667 as well as at the 10 January 15725 trough.

Source: ProRealTime

Nasdaq 100 weighs on 14452 to 14383 key support zone

Last week the Nasdaq fell all the way to the July and October lows at 14452 to 14383 which make up major long-term support. Around it the contract is likely to stabilise, at least short-term.

If the 14383 October low were to be slipped through on a daily chart closing basis, however, the February and April peaks at 14078 to 13906 would be next in line.

Intraday bounces might encounter resistance at the 14599 mid-October low, the 14715 August low or the 14818 20 September trough.

Source: ProRealTime

[MongiIG]

Tentative gains for indices after Monday’s volatility

Stock markets endured wild swings yesterday, but have managed to edge higher in morning trading.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Tuesday 25 January 2022 

FTSE 100

The slump yesterday took the FTSE 100 as far as 7226, but a recovery later on in the day meant that the price closed above the 50-day simple moving average (SMA), limiting the damage. Some small declines overnight have not yet breached this level to the downside. In addition, the price has bounced off trendline support from the March 2020 lows.

For the moment, the broader risk-off move remains in place, but a bounce back above 7400 would begin to suggest that a higher low has been created which might then put 7600 back into view.

Source: ProRealTime

DAX

Once again the price dipped into the big zone of support at 15,000 before bouncing. An additional fall overnight has not made much headway, and it looks like buyers are stepping in for now.

The index still needs a close back above 15,400 to suggest a more durable low has been created.

Source: ProRealTime

S&P 500

A huge rebound in Monday’s session meant that the price finished the day back above 4400, a positive development, although still below the 200-day SMA. A small fall overnight means that the sellers do still appear to have the upper hand.

Buyers will want to see a close back above 4400 and then above the 200-day SMA, although the big zone of previous support around 4550 still needs to be recovered.

Source: ProRealTime

[MongiIG]

FTSE 100, DAX and Dow bounce off major support zones ahead of FOMC

Indices are heading back up again, having endured some heavy losses last week. Video

IG Analyst | Publication date: Wednesday 26 January 2022 

FTSE 100 gunning for early January high

The FTSE 100’s drop to its current January low at 7226 has been followed by an inside yesterday, the break out of which to the upside earlier today is a bullish signal.

Above this week’s high at 7495 beckons the early January high at 7530. If overcome, this year’s high to date at 7635 will be back in the limelight, together with the pre-pandemic December 2019 and January 2020 peaks at 7680 to 7690.

Minor support can be seen between the early December high, 31 December low and the 55-day simple moving average (SMA) at 7379 to 7355.

Source: ProRealTime

DAX bounces off low and tries to slice through downtrend line

On Monday the DAX briefly slid to a four-month low at 14839 and on Tuesday consolidated above it by forming an inside day.

This chart formation occurs when the day’s bar (or candle on a candlestick chart) fits within the previous day’s bar, i.e. it has a lower high and a higher low than the previous day and thus denotes indecision. When, as was the case earlier this morning, a breakout of the inside day to the upside is seen, the implication is bullish.

The DAX is now breaking through its one-week accelerated downtrend line at 15374 with the last reaction high at 15590 being firmly in view. Further up potential resistance can be spotted between the 55- and 200-day SMAs and the 10 January low at 15673 to 15725.

Minor support below today’s low at 15132 comes in at the 20 December low at 15060.

Source: ProRealTime

Dow in recovery mode

The Dow's January descent has taken it all the way down to this week’s low at 33146 before stabilising.

A rise back towards the 200-day SMA at 35161 is now on the cards. The next higher 10 and 14 January highs as well as the 55-day SMA at 35591 to 35643 will need to be bettered, though, for the January peak at 36955 to be back in focus.

Slips below the 21 January and today’s low at 34269 to 34219 should find support at the 33951 December low.

Source: ProRealTime

[MongiIG]

Indices hit hard in wake of FOMC

FTSE 100, DAX and S&P 500 slide on US Fed’s hawkish stance.

Source: Bloomberg

IG Analyst | Publication date: Thursday 27 January 2022

Bearish engulfing candle on the FTSE 100 post-FOMC

Yesterday the FTSE 100’s advance came close to the 7530 early December high by stalling at 7526 and giving back much of its daily gains.

Today a bearish engulfing candlestick pattern is in the process of being formed which could potentially take the index back down to the 7226 to 7191 support area. It consists of this week’s low, the 200-day simple moving average (SMA) and the major 2020 to 2022 uptrend line.

Only if the index were to recover and rise above the 7526 to 7530 resistance zone, would this year’s high to date at 7635 be back in the frame, together with the pre-pandemic December 2019 and January 2020 peaks at 7680 to 7690.

Source: ProRealTime

DAX gives back all of yesterday’s gains in the wake of FOMC

The DAX has taken another hit after the US Federal Reserve’s (Fed) indication that its first rate rise will come in March, with intraday dropping to 15045, close to the mid-December low at 15060 which offered support.

A slip through 15045 would probably lead to the November and current January lows at 14917 to 14839 being revisited.

Downside pressure should retain the upper hand while the DAX remains below its accelerated downtrend line at 15484.

Source: ProRealTime

S&P 500 back in free-fall in light of Fed’s expectation to raise rates in March

The S&P 500 futures contract has taken another beating, pressured by the hawkish turn in the Fed’s forward guidance.

The contract yesterday formed a bearish engulfing pattern on the daily candlestick chart and came off its 4446 intraday high before dropping close to the 4260 October trough.

If fallen through, the July and current January lows at 4224 to 4213 would be back in the picture. Minor resistance is seen at the 4348 mid-August low and along the steep January downtrend line at 4421.

Source: ProRealTime

[MongiIG]

Indices struggle to establish a direction

Indices are quieter after the volatility of earlier in the week, but are for the moment unable to establish a clear path either higher or lower.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Friday 28 January 2022 

FTSE 100

The FTSE 100 has dropped back from 7600 again, establishing that short-term resistance lies around this level.

This also puts it below the highs from earlier in the month, although given the index is still up 250 points from Monday some exhaustion of upward momentum is not surprising.

A deeper correction below 7400 would damage the bullish thesis, although the 7300 zone also looms as possible support.

Source: ProRealTime

DAX

After bouncing over the past two weeks, the index has begun to reverse, dropping back below 15,400.

A further reversal that falls below 15,300 brings 15,000 back into view. This has been key support since May, and may yet prevent further downside.

A bounce back above 15,400 helps to revive the bullish view.

Source: ProRealTime

S&P 500

Declines have slowed here, with the index holding around 4350 and inside the support zone created back in September.

As yet there is little sign of a bounce, but a more bearish view would require a close below 4250.

On the downside, 4240 and 4150 would be potential support in the near term.

Source: ProRealTime

[MongiIG]

Indices to start week off on a positive footing

The FTSE 100, DAX 40 and S&P 500 are displaying bullish technical signs.

Source: Bloomberg

IG Analyst | Publication date: Monday 31 January 2022

FTSE 100 boosted by late gains on Wall Street on Friday

On Friday the FTSE 100 formed another inside day, the breakout of which today or tomorrow is expected to determine the medium-term trend.

A rise above Friday’s high at 7585 would most likely lead to an advance above the current January high at 7635 towards the pre-pandemic December 2019 and January 2020 peaks at 7680 to 7690 taking place.

Only a currently unexpected slip below Friday’s inside day low at 7418 may lead to Thursday’s low at 7321 being back on the table. Below this level key support remains to be seen between the January trough, 200-day simple moving average (SMA) and the major 2020-to-2022 uptrend line at 7226 to 7202.

Source: ProRealTime

DAX’s rise above Friday’s inside day is short-term bullish

The DAX 40 not only formed two consecutive Hammer formations on the daily candlestick chart last week but early this morning rose above Friday’s inside day pattern, all of which is bullish behaviour.

The January downtrend line, 55- and 200-day SMA at 15655 to 15669 represent the first upside target, together with the 10 January low at 15725.

Next up beckon the 7 December and 20 January highs at 15872 to 15922. Only a less probable slip through the December and last Thursday’s lows at 15060 to 15045 would have bearish implications.

Source: ProRealTime

S&P 500’s recovery from its key support has further to go

The S&P 500 futures contract’s bounce off its July and January 4224 to 4213 major support area has further to run with the late September high at 4472 being in the limelight once a rise above last week’s high at 4446 has ensued.

Further up sit the early and mid-December lows at 4492 to 4520. This resistance area also incorporates the 50% retracement of the steep January descent.

Minor support is now seen between the October low and last Wednesday’s low at 4264 to 4260 and major support between the July and January 4224 to 4213.

Source: ProRealTime

[MongiIG]

Indices look for further gains after Monday rebound

A more bullish view prevails across indices thanks to recent gains.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Tuesday 01 February 2022

FTSE 100

The FTSE 100 continues to claw its way back from Friday’s losses.

Having suffered less than others recently, its performance yesterday was much more muted. But it is still on a path back towards 7600, the crucial area of resistance. Beyond this the previous high from January at 7634 comes into view.

The previous few sessions have seen higher lows, so we need to see this broken to the downside with a move below 7440 to provide a more bearish short-term view.

Source: ProRealTime

DAX

A rebound from the lows of late January continues, although now the price faces the obstacles of the 50-day simple moving average (SMA) of 15,669, 200-day SMA (15,624) and also trendline resistance from the record high.

If it can breach this then a bullish view continues to prevail.

Source: ProRealTime

S&P 500

Having rebounded above the 200-day SMA (4447) the index is in a more bullish form, and now needs to clear the zone around 4500 that marked both resistance on the way up and support in November.

The defence of 4300 leaves the overall longer-term bullish outlook intact, and it would require a reversal back below the 200-day SMA to reverse the view towards a neutral one.

Source: ProRealTime

[MongiIG]

Indices remain on a positive footing but encounter resistance

The FTSE 100, DAX 40 and S&P 500 near short-term technical resistance.

Source: Bloomberg

IG Analyst | Publication date: Wednesday 02 February 2022 

FTSE 100 rises after third day of gains on Wall Street but encounters resistance

Monday’s inside day breakout to the upside is taking the FTSE 100 back up to last week’s high at 7597 which short-term caps.

A move above this level would probably lead to an advance above the current January high at 7635. Above this high lurk the pre-pandemic December 2019 and January 2020 peaks at 7680 to 7690.

Minor support comes in at Monday’s 7535 inside day high as well as at the mid-January low at 7507.

Only a currently unexpected slip below Friday’s inside day low at 7418 would have bearish connotations, though. Such a drop would push Thursday’s low at 7321 back to the fore.

Source: ProRealTime

DAX encounters minor resistance at 15728 to 15800

The DAX 40 has broken through the one-month downtrend line at 15626 and reached the 55-day simple moving average (SMA) at 15710 which offers resistance today, together with the 15728 to 15800 zone. It contains several daily highs seen since late October and the 10 January low.

A minor retracement back towards the 200-day SMA at 15627 may thus ensue. The next lower 15584 27 January high should offer support, though.

While the index remains above Monday’s low at 15338, upside pressure should be maintained. A rise above the 15800 mark would put the early December high at 15872 back on the table.

Source: ProRealTime

After four straight days of gains the S&P 500 may meet resistance at 4573 to 4666

The S&P 500 futures contract’s swift recovery from its July and January 4224 to 4213 major support zone is fast approaching the 4573 to 4666 resistance area which is likely to cap, at least short-term.

It incorporates the mid-December, 10 and 14 January lows, 61.8% Fibonacci retracement of the January decline and the one-month downtrend line.

Should this not be the case and the current rally continues unabated, the November, mid-December and mid-January highs at 4739 to 4743 would be targeted next.

Slips should find support around the early and mid-December lows at 4492 to 4520. This area also incorporates the 50% retracement of the January descent.

Source: ProRealTime