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The weekly market brief

๐Ÿ’ก1 - 6 March 2021

๐Ÿ“ˆ FTSE 100: 6,630.52 ( +0.84%)

๐Ÿ“ˆ FTSEMIB: 22,965.63 ( -0.94%)

๐Ÿ“ˆ DAX: 13,920.69 ( - 0.20%)

๐Ÿ“ˆ S&P 500: 3,841.94 ( - 0.73%)

๐Ÿ“ˆ Nasdaq 100: 12,668.51 ( -3.30%)

๐Ÿ“ˆ Dow Jones: 31,496.30 ( +0.23%)

The percentage increases are on a weekly basis


FTSE 100 (#UKX)

The #UKX closed the week up +0.84% pushed by high oil prices despite a fall in the GBP/USD rate. As highlighted last week, the Index managed to test the 6,600 and seat above the 50MA.

From a technical perspective, the #UKX failed to break the current downward trendline in place from 7 January 2021: a close above it, would eventually confirm a push to the upside.

The MACD is signalling a loss of momentum and further move to the downside are still on the table, in addition the indecision candle of Friday doesnโ€™t give much clarity.

For the week ahead, a close above 6,700 would confirm a break of current downtrend and set our target at 6,800. On the other side, if the #UKX starts to close below the 50MA together with a cross over of MACD, this would signal a continuation to the downside and we will target 6,470.


Support at 6,462 and resistance at 6,662


FTSEMIB (#FTSEMIB)

The #FTSEMIB had another negative week down -0.94%: the indecision in the market is represented by the almost sideways move it had this week.

Not much as changed from last week readings as the Index keep brushing the downward trendline with no strong moves in either direction.


From a technical perspective, the MACD and RSI are both bearish and still have room to fall lower: perhaps, the #FTSEMIB might found a good reversal point at the 50MA.

For the week ahead, we believe the important level to watch will be 22,600 and 23,000: a close below 22,600 would signal a further possible sell off with target at current support. On the other hand, a close above 23,000 might signal a short term change of sentiment where will target current resistance

Support at 22,380 and resistance at 23,435


DAX (#DAX)

The #DAX closed the week almost unchanged down only -0.20%: the rebound from last week kept the upward trend still intact.

From a technical perspective we can see how the MACD is signalling a loss of momentum, we no significant moves during the week.

The RSI is instead pointing to the downside.


For the week ahead, a close below 50MA would trigger the break of current upward trend line that would lead us to target 13,660.

On the positive note, a break of 14,127 (better if supported by a backtest) would confirm a push to the upside.

Support at 13,660 and resistance at 14,127


S&P 500 (#SPX)

The #SPX had a volatile week down -0.73% helped on Friday by positive Non Farm Payrolls figures that brought the Index to rebound from the week low.

Given the strong moves to the downside of last week, the coming week could offer few upside potentials.


From a technical perspective, the MACD is signalling a reversal in momentum together with the RSI that switched to the upside.


For the week ahead, we see a short term continuation to the upside testing current resistance. A break of current resistance level would trigger 3,900 as intermediate target.

On the other side, a close below current support would confirm a continuation to the downside


Support at 3,806 and resistance at 3,871


NASDAQ (#NDX)

The #NDX had another strong negative week down -3.30% where a continuous hike in 10 years fuelled strong sell off in tech stocks: the #NDX has now entered a bearish trend.


From a technical perspective, the #NDX is almost in oversold territory with a quite low RSI. The MACD, below 0 as so confirming a bearish momentum. Is signalling a potential reversal to the upside.


For the week ahed, we can see how the #NDX found support at 12,255 which acted as resistance during the Q4 2020: given the overextended move to the downside, we believe the Index can go now to re-test the level at 13,000 just below the 50MA.

A break of current support, would confirm a further sell off which we believe is now not on the table.

Support at 12,255 and resistance at 12,758


DOW JONES (#DJI) The #DJI, among the markets we cover, had the strongest week up + 0.23% fuelled by a NFP well above expectations.


From a technical perspective, we can see how the the Index always managed to close above the 50MA avoiding strong moves to the downside and consolidating the area of 30,800 as strong support.

The MACD is signalling a possible momentum to the upside support by a positive RSI.


For the week ahead, we believe the #DJI has potential to move higher where a break of current resistance could lead it to all time high.

On the there side, a close below the 50MA would initiate moves to the downside


Support at 30,800 and resistance at 31,643

OTB Global Investments

London, 6 March 2021

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