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Weekly market brief

๐Ÿ“ˆ FTSE 100: 6,737.30 ( +0.36%)

๐Ÿ“ˆ FTSEMIB: 24,710.00 ( +1.40%)

๐Ÿ“ˆ DAX: 15,107.17 ( +2.55%)

๐Ÿ“ˆ S&P 500: 4,019.87 ( +2.36%)

๐Ÿ“ˆ Nasdaq 100: 13,329.52 ( +4.13%)

๐Ÿ“ˆ Dow Jones: 33,153.21 ( +1.10%)

The percentage increases are on a weekly basis


FTSE 100 (#UKX)

The #UKX had a, short, positive week closing up +0.36% being less active than its European peers.


From a technical perspective, the Index closed the week with an inverse hammer candle and got again rejected by resistance level.

As highlighted last week, the 50MA is very strong and has been holding as support for the whole March 2021.

The current sideway of the #UKX could be read as consolidation move to then eventually break above 6,800: this scenario can be confirmed by the MACD which give the impression to roll over soon and an RSI that is currently flat.


On the other side, the multiple rejections may signal a weak trend and a reversal on the horizon.


For the week ahead, given the current scenario we are still more in favour of a re-test of current resistance: if the Index will manage to break and close above 6,800 we will target 6,900.

In case the index would continue sideways and break to the downside the current upward trendline, we will then target current support.


Support at 6,662 and resistance at 6,800


FTSEMIB (#FTSEMIB)

The #FTSEMIB had a positive week up 1.40% where it finally managed to break the strong resistance level and push to the upside.

From a technical perspective, once resistance is broken becomes support: at present the RSI is in overbought territory together with a MACD that is almost flat. These two indicators may signal that despite the high reading of the index, it may not be as strong as it looks like.

In addition, the last two trading candles signal strong indecision.


For the coming week, we are more in favour of a retest of the new support before evaluate further moves in either direction.


Support at 24,507 and resistance at 24,779


DAX (#DAX)

The German #DAX had a strong week up +2.55% reaching a new all time high with strong red candles supporting the positive sentiment.


From a technical perspective, the RSI is now in overbought territory but the MACD is signalling a strong positive momentum: the Index can indeed stay overbought for some time.

In addition, volumes appear to be stable and consistent.


For the coming, we might see a continuation to the upside: a break of current resistance would make us target 15,300, next level based on Fibonacci extension.

On a more bearish note, the index might test the 14,880 level before keep moving higher.


Support at 14,801 and resistance 15,137


S&P 500 (#SPX)

The #SPX had a strong week up +2.36% where it managed to test previous levels and push to all time high.

From a technical perspective, the last strong green candle may lead to a continuation to the upside especially with such a clear pattern: back test 3,943 and then pushed higher.

The MACD is confirming the positive momentum together with a RSI that is pointing to overbought territory.

For the coming week, we target 4,055 to then evaluate either a continuation or a temporary reversal.

Support at 3,979 and resistance at 4,055


NASDAQ 100 (#NDX)

The #NDX had a very strong week up +4.13% where it managed to overcome the 50MA.


From a technical perspective, the tech index managed to break the downward trendline and is not re-entering in previous support/resistance area.

The RSI is pointing to the upside support by a MACD that is curving upwards hoping to seat above 0: such a reading would confirm a positive momentum and bullish outlook.


For the week ahead, we see the #NDX to continue to the upside until 13,540: at this level, the #NDX may retrace slightly to then continue to the upside.


Support at 13,284 and resistance at 13,540


DOW JONES (#DJI)

The #DJI had a positive week up +1.10% and currently testing resistance level.


From a technical perspective, the indicators suggests that the Index was almost flat during this short week: the MACD and RSI are at same levels of last week.

Therefore, as current resistance is a strong level to overcome a break of it would confirm a continuation to the upside: would be preferable a scenario where the #DJI re-test 33,237 and then push higher.

Alternately, in case the index should start to close below 32,900 we will be in favour of a continuation to the upside.


Support at 32,038 and resistance at 33,237

OTB Global Investments

London, 5 April 2021

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