Weekly market brief: 7 - 12 June 2021

FTSE 100 (#UKX)

The FTSE 100 had a positive week up + 0.52%.

For the coming week we expect a consolidation between 7.035 and 7.120 where a break of either level could lead to strong moves in both directions.

Indicators

MACD and RSI are not offering many explanations on future fluctuations: the MACD is very close to crossing to the upside with an almost flat RSI during the last few sessions.

Since the past week, the repeated closes above the 9-day average point to further bullish momentum.

A consolidation between 7.035 and 7.120 could bring the 50-day average up to 7.000 and thus serve as strong support for bullish movements.

On more bearish tones, we want to mention the possible formation of a "bearish wedge" where a break at 7.035 could lead to strong bearish swings up to 6.900

Support at 7.035

Resistance at 7.122

FTSEMIB (#FTSEMIB)

The FTSEMIB had a very positive week up + 1.45% reaching pre-pandemic levels.

For the coming week, we confirm the uptrend but we expect a slight retrace back to 25.300 to then continue up to 25.750. A missed rebound to 25,300 could bring the index to 25,000

Indicators

MACD is showing a stable positive momentum above zero. On the contrary, the RSI is on a divergence with the price which could lead to bearish movements in the short term.

In addition, the price is 1.45% distant from the 9MA: this distance has generally led the index to drop slightly.

Support at 25.223

Resistance at 26,000

DAX (#DAX)

The DAX had a positive week up + 1.31% managing to break the strong barrier of 15.540.

For the current week we expect a slight retracement to 15.550 and then continue to the upside. Should the index manage to exceed 15.736, we will aim for 15.948 as the next target.

Indicators

The uptrend is confirmed by a sloping up of 200MA, 50MA and 9MA. The MACD is showing a recovery after the long consolidation phase. A slight discrepancy is however given by the RSI which shows a slight divergence with the price.

Support at 15,540

Resistance at 15.736

S&P500 (#SPX)

The S & P 500 had a positive week up by + 0.41%

For the week ahead, given the strong volumes on Friday, we are in favor of a continuation of the upside to 4.254. A quick achievement of this level could eventually bring the index even to 4,300.

Indicators

The MACD is finally crossing higher after the long consolidation phase even if the RSI shows a slight divergence with the price. The strong bullish trend, combined with the proximity to the 50MA, suggests further bullish upsides in the short term: the consolidation phase that began in mid-April allowed an increase in the 50MA which now plays a supporting role very difficult to break.

Support at 4.190

Resistance at 4.240

NASDAQ 100 (#NDX)

NASDAQ had a positive week up + 0.48%

For the week to come, we confirm the upward trend of the index and indicate 13.950 as a short-term target.

Indicators

The MACD is slowly surpassing the 0 level confirming what could be the beginning of an uptrend. The RSI after a consolidation at 50 is gradually pushing up.

The 13.540 reversal candle and strong volumes on Friday allowed the #NDX to position above the 50MA.

We read these latest swings as a confirmation of the support at 13.540 with strong bullish movements that will, in the short term, point to the current resistance

Support at 13,540

Resistance at 14.047

DOW JONES (#DJI)

DOW JONES had a positive week up + 0.40%

For this week we expect the index to slow down and consolidate at current prices: specifically, we believe it can swing down to 34.400.

Indicators

The MACD signals a possible bullish cross while the RSI is currently diverging with the price. Given the indicators, we do not believe that the #DJI will have the necessary push to break the current resistance: a similar scenario would be possible only after a phase of consolidation.

Support at 34.261

Resistance 34,800

OTB Global Investments

5 June 2021