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 (