FTSE 100 (#UKX)
The FTSE 100 had a mixed week closing with a slight fall of -0.14%
For the week ahead we confirm the uptrend with the first target at 7.165 and 7.215 to follow.
Indicators
This week the index consolidated between 7.165 and 6.980, a relatively wide range that indicates how the break of one of the two levels will lead to strong moves in either directions.
We remain in favor of an uptrend, supported by a rising 50MA and a MACD that is crossing over to the upside.
RSI is rising, the break of one of the two trendlines will anticipate the direction of the index
Support at 7,030
Resistance at 7.165
FTSEMIB (#FTSEMIB) The FTSEMIB was down for the week by -0.88%
For the coming week, the FTSEMIB may have entered a bearish channel, we will wait for the reaching of 25.300 to have a more precise direction.
Indicators
The FTSEMIB this week closed below the 50MA, which hasn't happened since January 2021.
It can be noted that the uptrend channel was momentarily broken and the index started to form lower highs from the beginning of June till today.
MACD is gradually falling below 0, which could indicate a shift in momentum.
A more bullish scenario, however, is given by the RSI that is approaching the trendline, where a break of it could support a bullish movement.
In addition, we had a strong rebound to 24.470 (intermediate support / resistance) followed by a strong bullish candlestick on Friday.
We will wait for a close above the 50MA and above the bearish channel at 25.300 to re-confirm the uptrend.
Support at 25,554
Resistance at 24.930
DAX (#DAX)
The DAX closed the week up by + 0.37%
For the week ahead we confirm again our target at 15.736 and then aim for 15.800.
Indicators
The intermediate resistance at 15.306 held up very well again and allowed the DAX to open the next day above the 50MA.
Volumes seem to be in favor of a bullish momentum also supported by a MACD that seems to want to crossover to the upside.
Particular formation in the RSI, a break of one of the two trend lines could suggest the future direction of the Index: we are in favor of a break to the upside
Support at 15.306
Resistance at 15.736
S&P500 (#SPX)
The S&P 500 had a positive week up + 0.90%
For the week ahead, the index could go to test 4.390
Indicators
It would be more appropriate to expect a retracement of the index but given the strong volumes on Friday, these suggest a continuation at least up to 4.390.
Once this level has been reached, we expect a consolidation phase, thus allowing a reconciliation with the 50MA average and a reduced divergence between RSI and price.
MACD signals strong bullish momentum albeit very close to a bearish crossover.
The general setup of the S&P500 remains very fragile and until there is a more consistent retracement to the 50MA we do not recommend long positions.
Support at 4,286
Resistance at 4.390