Market brief: 27 September - 1 October 2021


FTSE 100 (#UKX)

The FTSE 100 ended the week up + 2.26%

For the week, after an initial retracement, we expect a bullish continuation to 7,165


Indicators

This week the FTSE managed to test the previous levels of 19-20 July and then reverse to the upside.

The last few days have been characterized by strong volumes, therefore a slight retracement at the beginning of the week could be physiological to support further rises.


MACD is crossing to the upside confirming what could be a change in momentum, from bearish to bullish.

RSI, after reaching almost oversold, reversed vigorously to the upside.


We believe both indicators can support the FTSE until it reaches 7,165


Support at 6,856

Resistance at 6.980


FTSEMIB (#FTSEMIB)

The FTSEMIB had a week up + 2.48%

For the week we could see a slight retracement and then continue upwards to 26.184.


Indicators

After testing the second support at 24.930, the index managed to reverse to the upside closing the week above the 50MA. In the immediate future, we could see a retracement right up to the 50MA and then continue to rise: this would be a physiological retracement that would allow us to avoid overbought situations.

MACD, is crossing to the upside and breach of the 0 threshold would confirm the bullish moment of the index.

RSI, rising after the last few weeks, managed to break the bearish trendline and it has now room to support bullish moves.



Support at 25,554

Resistance at 26.184


DAX (#DAX) The DAX ended the week up + 2.03%

For the week ahead, we expect the index to continue its uptrend to 15,736.


Indicators

As with most European indices, the DAX tested the second support level and then reversed to the upside.

As in the second half of July, the index after a strong selloff is consolidating between the 9MA and 50MA: we believe that this consolidation phase will initially lead it to test, and then to break, the resistance level at 15,736.

MACD is about to cross to the upside supported by an RSI which after hitting the oversold has reversed vigorously to the upside.


Support at 15,306

Resistance at 15,736


S&P500 (#SPX)

The S&P 500 had a week up by + 2.03%.

For the coming week, the index could consolidate at current levels to then continue to the upside till 4,520.


Indicators

The index managed to break the bullish trendline with strong volumes up to 4,320.

The close above the 50MA suggests a possible continuation of the bullish and a re-entry on the trend line.


This hypothesis is in fact supported by the MACD and RSI indicators which are both reversing to the upside after going through a bearish phase.


Support at 4.390

Resistance at 4.468


NASDAQ 100 (#NDX)

The NASDAQ ended the week up + 1.52%

For the week ahead, the index could continue rising to 15,500


Indicators

We believe NASDAQ has now completed a good retracement to 14.775. In particular, the last two candles above the 50MA confirm 15,152 as strong support.

The bullish push, in our opinion, is also supported by the MACD and RSI indicators which after a bearish phase are reversed to the upside.


To conclude, it is precisely the 50MA that is giving the direction for the week. A sharp turnaround and closing below it, would lead the index to quickly reach 14,775: an option that is currently not feasible.


Support for 15.152

Resistance at 15,702


DOW JONES (#DJI)

DOW JONES had a week up + 2.16%

For the coming week we expect, after a slight retracement, a push till 35,096.


Indicators

The index, after testing again the support at 33,600, managed to reverse to the upside, closing the week just below the 50MA.

We expect a consolidation between 34,500 and 34,900 before reaching the current resistance level.


An initial retracement would be more than physiological after a recovery of more than 1,000 points.


A short-term bullish trend is also supported by the indicators: MACD is about to cross upwards and RSI, after reaching oversold, has reversed upwards, positioning itself at the level of 50.



Support for 34.261

Resistance 35,096

OTB Global Investments

25 September 2021


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