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Weekly market brief: 25 - 29 October 2021


Index

Current price

Expectation

S1

R1

S2

R2

​FTSE100

7.024

Bearish

7.165

7.220

6.980

7.285

FTSEMIB

26.572

Bearish

26.184

26.750

25.554

27.370

DAX 40

15.553

Bearish

15.306

15.736

14.967

15.980

S&P 500

4.542

Bearish

4.468

4,545

4.390

4.590

NASDAQ 100

15.355

Bearish

15.152

15.500

14.775

15.702

DOW JONES

35.677

Bearish

35.455

35.772

35.096

35.772

S: Support R: Resistance

FTSE 100 (#UKX)

The FTSE 100 ended the week down -0.08%

For the week we expect a downside to at least 7,165


Indicators

The past week of consolidation could now lead the FTSE100 to retrace slightly.


Towards the beginning of the week we expect a "back-test" of the previous resistance level (now support).

MACD is starting to curve to the downside after a good bullish period.

RSI was again rejected at the level of 60 and we could now expect a slight retracement in the indicator as well.

A key role is in fact now played by the support at 7,165: the index could reverse to the upside once this level has been tested with a bull flag formation. At the same time, such a reaction could lead the index into overbought territory.

Second scenario, it could see a retracement to 7,120 and then evaluate subsequent swings.

Support for 7.165

Resistance at 7,220


FTSEMIB (#FTSEMIB)

The FTSEMIB had a week up + 0.80%

For the week we could see a retracement to 26.184

Indicators

The index has now consolidated at the levels of the end of August and we could see a slight at least till the support level (former resistance).

The reversal candle reported on Friday suggests a possible “evening doji star” formation and therefore a possible imminent descent.

MACD, despite a strong rally, is signaling a slight weakening

RSI is now at 60, a resistance level that has been respected more than once and which, looking at previous moves, could now reverse to the downside.


A slight retracement would avoid overbought situations and make the bullish push less hectic.


Support for 26.184

Resistance at 26,750


DAX (#DAX)

The DAX ended the week up + 0.28%

For the week ahead, we expect a slight decline to 15,400


Indicators

After being pushed back few times by the 50MA, we could expect a slight retracement to the intermediate resistance at 15,400-15,450 for the week.

Once it has reached these levels, it will be necessary to understand whether the index will be more inclined to a bull flag formation or to a more general bearish "topping patter" that could lead to the DAX retesting 15,200

The MACD, despite an upward crossing, is still below 0 confirming a still "bearish" momentum and a failure to overcome it would support the thesis of a possible downside.

The RSI has almost reached the level of 60 and looking at previous fluctuations it could retrace slightly.


Support at 15,306

Resistance at 15,736


S&P500 (