FTSE 100 (#UKX)
The FTSE 100 ended the week down -1.69%
For the week ahead, the index could test the intermediate support at 6.930 and then reverse to the upside.
Indicators
This week the FTSE respected the bear flag setup and managed to break out of the 7,000 level.
For the week ahead, the index could go to test the intermediate resistance at 6.930 and then reverse to the upside.
MACD crossed to the downside reflecting the negative momentum of the index and the RSI, rejected once again at 44, is pointing downwards.
Should the index break further the level of 6,930, we will expect a similar swings in depth and speed to that of July 19th: a quick head to 6,856 and then reversing vigorously to the upside.
Support at 6,856
Resistance at 6.980
FTSEMIB (#FTSEMIB)
The FTSEMIB had a week down -0.42%
For the week, we expect a consolidation of between 25,700 and 26,000
Indicators
This week the 50MA once again acted as support. Friday's strong bearish candlestick could anticipate a continued downside to the start of the week.
MACD is about to cross to the downside along with a RSI which appears to breaking the 43.00 support level.
Breaking one of the two levels 25.700 - 26.000 could lead to more swings. A possible drop to 25,200 would offer a good entry point for long positions
Support at 25,554
Resistance at 26.184
DAX (#DAX)
The DAX ended the week down -1.58%
For the week ahead, the price could test 15.306 and then reverse to the upside.
Indicators
The DAX managed to test the resistance at 15,736 and then continue to fall.
Given the strong bearish candle on Friday, the index could continue selling in the first part of the week with also a possible test of the support area.
MACD is crossing to the downside and the RSI has broken the support level at 40: this could lead the index to test the support and then reverse to the upside.
The DAX trend is still upward but we believe the retracement in progress is physiological in order to be able to continue upward.
Support at 15,306
Resistance at 15,736
S&P500 (#SPX)
The S&P 500 had a week down by -1.20%.
We believe the index could test 4,390 for the coming week
Indicators
The index rebounded this week on the 50MA and then returned to it on Friday: the setup looks very similar to that of a bear flag, which could therefore lead to a further decline in the coming days.
MACD is continuing to fall but we do not believe it can exceed the 0 threshold, while the RSI is testing again the 43.00 level: strong support from January 2021.
A possible retracement to 4.390 would offer an excellent opportunity for a long position