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