FTSE 100 (#UKX)
The FTSE 100 ended the week with a rise of + 1.53%
For the week we expect a consolidation between 7,165 and 7,220 where a break of the two levels could then lead to strong moves.
Indicators
This week the FTSE, after a slight retracement, managed to break the resistance level and consolidate at the highs of mid-June.
MACD is positive confirming the bullish momentum of the index.
RSI is approaching the overbought zone and is recording a slight divergence with the price, especially if we analyze the time frame between mid-June and mid-August 2021.
The trend is strongly bullish but, looking at previous fluctuations, we can see a certain distance between the price and both 9 and 50 moving averages: the FTSE in particular tends to fluctuate near those averages and the current distance makes us thinking of a slight retracement in the short term.
A break of the two levels, 7,165 and 7,220, will lead to strong fluctuations in the short term: we remain in favor of a retracement to the 50MA before considering long positions.
Support for 7.165
Resistance at 7,220
FTSEMIB (#FTSEMIB)
The FTSEMIB had a positive week up + 2.00%
For the week ahead, we expect an initial retracement to 26.184
Indicators
The index managed to break through the psychological resistance of 26,000 and we believe it is now close to a slight retracement.
MACD is positive and above 0 noting the bullish momentum with an RSI that has reached the overbought zone.
Given the strong distance from both the 9 and 50 moving average, we expect a retracement in the short term at least till the support level: this theory is supported by how prices have moved in previous periods.
Support for 26.184
Resistance at 26,750
DAX (#DAX)
The DAX ended the week up + 1.26%
For the week ahead, we expect a retracement to 15,800
Indicators
The DAX managed to break through the strong resistance level and then stretch up to 16,000.
The MACD is positive confirming the bullish momentum of the index
The RSI is approaching the overbought zone and is in sharp divergence with the prices at the end of April.
Friday's candle is an "inverted hammer" which suggests a possible reversal to then continues the upward trend. In addition, the price is now quite far from both the 9 and 50 moving average and a retracement of it would be more than natural.
Support for 15,736
Resistance at 16,050
S&P500 (#SPX)
The S&P 500 had a week with a slight increase of + 0.83%
For the week ahead, we expect an initial retracement to 4,440
Indicators
The index reached a new high hitting the top in what appears to be a "rising wedge" formation.
MACD has been flat since the beginning of August, suggesting that there will certainly be strong fluctuations in the short term.
RSI is approaching the overbought zone and is in slight divergence with the prices of the beginning of July.
The trend remains strongly bullish but if the “rising wedge” formations is true, we could expect in the short term a strong bearish mov