Index | Current price | Forecast | S1 | R1 | S2 | R2 |
​FTSE100 | 7.348 | Bearish/Cons | 7.330 | 7.470 | 7.220 | 7.550 |
FTSEMIB | 27.733 | Bearish/Cons | 26.750 | 27.870 | 26.184 | 28.700 |
DAX 40 | 16.094 | Bearish/Cons | 15.890 | 16.094 | 15.736 | 16.260 |
S&P 500 | 4.683 | Bearish/Cons | 4.600 | 4.720 | 4.550 | 4.800 |
NASDAQ 100 | 16.200 | Bearish/Cons | 15.700 | 16.450 | 15.152 | 16.600 |
DOW JONES | 36.100 | Consolidation | 35.772 | 36.482 | 35.455 | 36.800 |
S: Support R: Resistance
FTSE 100 (#UKX)
The FTSE 100 ended the week up + 0.60%
For the week we expect a retracement to at least 7,220
Indicators
Positive week for the British index which managed to break the previous resistance, now support, at 7,330.
We believe that this additional momentum is more due to the sharp depreciation of the GBP/USD rather than to an actual recovery in the strength of the index.
MACD and RSI remain very extended to the upside and looking at previous swings a retracement in the short term would be more than physiological, to also avoid overbought situations.
By expecting a recovery in GBP/USD combined with an over-extension in the MACD and RSI indicators, we are in favour of a retracement at least to 7,220 to then continue higher.
Support at 7,330
Resistance at 7,470
FTSEMIB (#FTSEMIB)
The FTSEMIB had a week up + 0.60%
For the week we remain in favour of a retracement to 27,300
Indicators
After retesting the 9MA, the index reversed upwards in what, in our opinion, could end in a "double bottom" at 27,870.
MACD despite the price recovery of the last few days continues to signal a loss of momentum, combined with an RSI still overbought.
The trend of the Italian index remains bullish but we believe the price is at the moment it is overbought, limiting the opportunities for long positions. In addition, there is a considerable distance from the 50MA.
Support for 26,750
Resistance at 26,870
DAX (#DAX)
The DAX ended the week up + 0.32%
For the week ahead, we expect a slight decline to 15,980
Indicators
The German index continues to fluctuate in a close parallel channel, tested already a few times during the week.
The price fluctuation could suggest a break to the upside but in our opinion, it is more the MACD and RSI indicators that sound a precautionary alarm.
MACD, despite a bullish week, is continuing to signal a loss of momentum.
RSI has reached the overbought zone where we could expect a subsequent retracement in the short term
Support for 15.980
Resistance at 16,094
