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Weekly market brief: 15 - 19 November 2021


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