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The weekly market brief

๐Ÿ’ก22 - 26 Marzo 2021

๐Ÿ“ˆ FTSE 100: 6,740.59 ( +1.24%)

๐Ÿ“ˆ FTSEMIB: 24,393.26 ( +1.41%)

๐Ÿ“ˆ DAX: 14,748.94 ( +1.40%)

๐Ÿ“ˆ S&P 500: 3,974.54 ( +1.51%)

๐Ÿ“ˆ Nasdaq 100: 12,979.12 ( -0.05%)

๐Ÿ“ˆ Dow Jones: 33.072.88 ( +1.39%)

The percentage increases are on a weekly basis


FTSE 100 (#UKX)

The #UKX had a positive week up +1.24% where a general positive sentiment about reopening of the economy hold the Index above support level.


The current support level has been confirmed throughout the whole month of March, making it an important barrier for downside moves. As a consequence, we can notice how the 50MA is also playing a crucial role in holding the #UKX.


From a technical perspective, despite a bearish week the British index managed to recover on Friday with positive volumes to the upside also confirming the ascending triangle and upward trend-line from the end of January 2021.

The positive momentum is also confirmed by a MACD that is curving to the upside and remain well above 0.


For the coming week, we are in favour to a continuation to the upside to retest current resistance: a break and close above it, would confirm further upsides.

At the same time, in case the #UKX should close below current support, we will target 6,560.


Support at 6,662 and resistance at 6,801.


FTSEMIB (#FTSEMIB)

The #FTSEMIB had a positive week up +1.40% pointing to current resistance level.

From a technical perspective, the Italian index is now at a crucial point because is at the same level that got rejected already three time: a break and close above would confirm a break of current resistance and a possibile continuation to the upside.


Despite being modestly bullish, there are few red flags that may not confirm the positive momentum: the MACD is almost flat and the RSI is actually providing strong divergence with the price. In addition, the candle formed on Friday looks like an โ€œevening starโ€™ which generally a reversal setup.

Therefore, for the coming week if the Index manages to close above current price we will be in favour of a break of current resistance and continuation to the upside. On the contrary, if the #FTSE closes below 24,250 we may start to see a correction taking place.


Support at 24,122 and resistance at 24,507.


DAX (#DAX)

The #DAX, like major European indexes, had a positive week up +1.40%.


From a technical perspective, the German index on Friday gapped up to reach almost resistance level. As a general rule of thumb, a gap is a bullish signal however based on the history of the chart gaps were often followed by downside moves.

The MACD has been reported, despite a positive week, a loss of momentum which could eventually trigger moves to the downside. The RSI has been instead almost flat.


For the coming week, we might see a re-test of the 9MA to then continue to the upside.

A failed reversal on the 9MA would open the door for further moves to the downside.


Support at 14,414 and resistance at 14,748.


S&P 500 (#SPX)

The #SPX had a positive week up +1.51% where it managed to re-enter in the upward channel and it is not at and important resistance level.

From a technical perspective, the Index is at the level that got heavily rejected last week however the strong bullish candle of lead the MACD to reverse to the upside, which could give a positive momentum to the upside.

On the contrary, the RSI is showing strong divergence with the price which could signal future downturns.


For the week ahead, we expect the #SPX to backtest 3943 before keep moving to the upside.

A close below the current upward channel, would instead signal a breath to the downside.


Support at 3,876 and resistance at 3,979


NASDAQ 100 (#NDX)

The #NDX had almost a flat week down -0.05% as it is now gradually recovering from recent sell off.


From a technical perspective, the support level held strong throughout the whole week and the Index is now approaching the downward trendline that has been taking place since February 2021.

A break of the trendline may confirm a positive upside till resistance: the MACD and RSI are both pointing to the upside which could bring short-term gains to the #NDX


For the week ahead, we believe a test of resistance level is possible. In case the Index should turn negative and break support level, we will target 12,400.


Support at 12,758 and resistance at 13,283.


DOW JONES (#DJI)

The #DJI had a positive week up +1.39% and it is now again at the upper end of the channel.


From a technical perspective, the setup remains bullish with a MACD curving to the upside and an RSI that is approaching overbought territory and showing strong divergence with the price.

The current price combine at the upper end of the channel, together with RSI, may signal slight correction moves before eventually keep going higher.

For the coming, we might see a continuation to the upside however a break of current resistance would bring the #DJI to overbought territory and pull backs will be on the table.

In the case the Index failed to move higher, a close below the 9MA would confirm a move to the downside till 30,100.


Support at 32,038 and resistance at 33,237.

London, 28 March 2021

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