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Weekly market brief: 16 - 20 January 2023


Financial index

Current price

Forecast

S1

R1

S2

R2

​FTSE100

7,844

Cons./ Bearish

7,400

7,900

7,200

7,800

FTSEMIB

25,783

Consolidation

23,400

25,900

22,400

26,500

DAX 40

15,086

Consolidation

13,800

15,200

13,400

15,500

S&P 500

3,999

Cons./ Bullish

3,750

4,100

3,600

4,180

NASDAQ 100

11,541

Cons./ Bullish

10,400

12,000

10,000

12,700

DOW JONES

34,302

Cons./ Bullish

31,200

34,500

30,200

35,000

TADAWUL

10,744

Cons./ Bullish

10,000

11,200

9,700

11,700

FTSE ADX

10,210

Consolidation

9,900

10,750

9,680

11,000

DFM

3,323

Cons./ Bullish

3,270

3,500

3,100

3,730

S: Support R: Resistance

FTSE 100 (#UKX)

The FTSE100 index had a week up by +1.88%

For the week ahead we are in favour of a possible retracement to the 7.650 area


Indicators

Very positive week for the English index which returns to 2018 highs'.


The upswings resulted in the break of the strong resistance area at 7,650 which now sees the price continuing to move on Bollinger Band upper level.


MACD and RSI are in large overbought territory and in negative divergence with the price action.


We believe that the risk/reward is even more in favour of short to medium term declines with the first target at 7,650 and then, in our opinion, proceed further downwards to at least 7,400-7,300.


We remain bearish on the FTSE100 given the over-extension to the upside


Support at 7,400

Resistance at 7,900




FTSEMIB (#FTSEMIB)

The FTSEMIB index had a week up by +2.40%

We are in favour of a consolidation in the 25,000 area for the week ahead