Jump to content

SP500, DAX40 and FTSE100 price forecasts


Recommended Posts

SP500 is correcting from overbought territory, while the DAX40 and FTSE100 test support.

 Shaun Murison | Senior Market Analyst, Johannesburg | Publication date: Thursday 06 July 2023 

SP500 (US500) - overbought and negative divergence signals within uptrend

6julysp500.pngSource: IG

The SP500 Index, while remaining in a long-term uptrend, has given some further indications that a short-term correction may be underway.

The long-term uptrend is gauged by the price still trading firmly above the 200-day simple moving average (200MA) (blue line).
The bearish price reversal around the high at 4450 is accompanied by an overbought signal and a bearish divergence signal with the stochastic oscillator. The low at 4330 provides an initial support target from the move lower.

Trend followers might prefer to wait for weakness to play out before looking for long entry on a bullish price reversal at one of the labelled support levels on the chart above.

DAX40 (Germany 40) - testing range support

 

6julydax.pngSource; IG

The long-term trend for the DAX40 remains up, while the short to medium term trend for the index is considered sideways. The price is currently testing support of sideways range at 15715.

Traders looking for long entry might prefer to see a price reversal off this level before looking for long entry and targeting a move back towards range resistance at the 16330.

Should the current support level (15715) not hold and instead a downside breakout confirm (with a price close below), 15485 becomes the next support target from the move. Traders still respecting the longer-term trend bias might then prefer to look for long entry on a bullish reversal before this level.

Only on a price move below the 200MA (blue line), would we reassess the long-term upward trend bias considered on the index. A move below the 200MA would instead change the assumed bias from up to sideways longer term.

FTSE100 - breaking support

 

6julyftse.pngSource: IG

The FTSE100 index, after finding resistance at the 7560 level, has moved to and through support at the 7410 level. A close below this level would consider 7285 as the next support target from the move.

Currently the long-term trend for the Index is considered sideways as we see the price whipsawing through the 200MA (blue line). Range traders might hope to see a bullish price reversal off this level for long entry before targeting a move back towards the 7560-resistance level.

If the 7285 level is broken with a close well below, a new longer-term downtrend for the index might then be considered.

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • Unlock a fantastic offer on RustMagic in 2024 with the promo code "HELLAGOOD". This code grants players a free $0.5, providing a perfect start to enhance your gaming experience on this popular platform. RustMagic is well-known among Rust players for its wide range of exciting activities, including skin trading, gambling, and various in-game events that keep the community engaged and entertained. How to Claim: Visit RustMagic: Open your web browser and navigate to the RustMagic website. Sign Up or Log In: If you don’t already have an account, click on “Sign Up” and fill in the necessary details to create one. If you have an account, simply log in. Navigate to the Promo Code Section: Once logged in, locate the promo code section, which is usually found in your account settings or the rewards section. Enter the Promo Code: Type in “HELLAGOOD” in the designated field and click on “Submit” or “Redeem”. Claim Your Bonus: Once the code is accepted, your account will be credited with a free $0.5. Benefits of the Promo Code: Using the promo code "HELLAGOOD" on RustMagic not only provides you with free $0.5 but also opens up more opportunities to participate in various activities on the platform. This bonus can be used to trade for valuable skins, enter into different games, or join betting events, giving you a competitive edge and enhancing your overall gaming experience. Why Choose RustMagic? RustMagic is a preferred choice for many Rust players due to its user-friendly interface, secure transactions, and a wide array of gaming options. The platform constantly updates its features and introduces new events to keep the gameplay exciting and fresh. With robust customer support and a vibrant community, RustMagic ensures that players have an enjoyable and engaging experience. Conclusion: Don’t miss out on this exclusive offer. Use the promo code "HELLAGOOD" on RustMagic in 2024 to get a free $0.5 and kickstart your journey on this exciting platform. Whether you are new to RustMagic or an existing player, this bonus provides a great opportunity to explore more of what the platform has to offer.
    • It's exciting to see the expansion of DeFi options on Hedera. SaucerSwap might have been the pioneer, but HeliSwap and HashSwap bring fresh perspectives to the table. Doing research sounds like a must before choosing a go-to platform. And that news about SaucerSwap landing on Bitget is definitely worth keeping an eye on. Thanks for the update
    • Thetanuts Finance looks promising with its focus on structured products and options trading, similar to Badger DAO and Opyn. While their growth and community building are positive, DeFi and options trading are complex and risky. Worth a shot if you're experienced, but simpler DeFi tools might be safer for newcomers.
×
×
  • Create New...
us