Weekly market brief: 13 - 17 December 2021


Index

Current price

Forecast

S1

R1

S2

R2

​FTSE100

7.292

Cons./ Bullish

7.220

7.330

6.980

7.405

FTSEMIB

26.722

Cons./ Bullish

25.820

26.750

24.935

27.406

DAX 40

15.623

Cons./ Bullish

15.040

15.736

14.815

15.980

S&P 500

4.712

Cons./ Bullish

4.600

4.720

4.484

4.770

NASDAQ 100

16.332

Cons./ Bullish

15.700

16.620

15.180

16.770

DOW JONES

35.971

Cons./ Bullish

35.455

36.000

34.800

36.300

S: Support R: Resistance

FTSE 100 (#UKX)

The FTSE 100 ended the week up + 1.83%

For the week ahead we expect a bullish continuation with a possible breakout of 7,330


Indicators

The strong bullish push of the first two days of last week is now seeing a gradual retracement to previous resistance areas: we believe that the index can retrace to 7,250 and then continue upwards.


MACD is gradually reversing to the upside and has now hinted at a breakout of 0: a positive sign of momentum recovery.

RSI, after breaking the bearish trendline, is now retracing slightly: a retracement between 45-50 could serve as support.


We are in favour of a short-term uptrend, with a slight retracement at the start of the week to support further upside.


Support for 7,220

Resistance at 7,320


FTSEMIB (#FTSEMIB)

The FTSEMIB had a week up by + 2.21%

For the week ahead we remain in favour of a bullish continuation at least till 27,200


Indicators

The strong upside reversal this week confirms the primary trend of the FTSEMIB: after the strong push, we believe that the index is now retracing to then continuing upwards.

At the beginning of the week, the index could "close the gap" to 26,500


MACD, still below 0, is gradually reversing upwards supported by the RSI which, after breaking the bearish trendline, is now fluctuating at 50


Support at 25,820

Resistance at 26,750


DAX (#DAX)

The DAX ended the week up + 2.19%

For the week ahead, we expect a consolidation between 15,400 and 15,500 to then continue higher


Indicators

After the bullish momentum, we believe that the DAX is now retracing to then continuing upwards: specifically, we expect a retracement that will “close the gap” formed on 6/12.


MACD is crossing to the upside and very close to breaking out of 0

RSI is now fluctuating at 50: exceeding it would support the bullish recovery of the index.


In the short term, we believe the DAX may still move higher with a target at 15,980


Support for 15.040

Resistance at 15,736


S&P500 (#SPX)

The S&P 500 had a week up by + 3.48%

For the week ahead, we expect some initial consolidation to then continue higher at 4,770


Indicators

The S&P continues to respect what appears to be an ascending triangle: in the short term, we expect a break of the current resistance however with an initial consolidation between 4,720 and the 9MA.


MACD has reversed to the upside and continues to remain above 0, confirming the positive momentum of the index

RSI, above 50, continues to rise


We remain bullish on the SPX considering moving averages and rising lower prices


Support for 4,600

Resistance at 4,720


NASDAQ 100 (#NDX)

The NASDAQ ended the week up + 4.52%

For the week ahead, we expect consolidation between 16,200 and 16,450


Indicators

The sharp rise of the Nasdaq followed by a consolidation above the 9MA is a positive indicator of price sustainability at least in the short term.


MACD is about to cross to the upside followed by a RSI which may soon break the intermediate resistance at 60.


Price fluctuations and indicators are both in favour of a bullish continuation in the short term: we see a plausible short-term target at 16,600


Support at 15,700

Resistance at 16,450


DOW JONES (#DJI)

The DOW JONES had a week up by + 3.08%

For the coming week, we expect an initial consolidation to then continue to at least 36,300


Indicators

The strong rise of the past week keeps the primary trend intact: the short consolidation between 35,600 -35,800 followed by a hammer candle on Friday 10/12 suggests a possible bullish continuation in the short term.


MACD, after having crossed to the upside, seems to want to cross the 0 line supported by a strong recovery in the RSI.


Support at 35.455

Resistance 36,000

OTB Global Investments

12 December 2021

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