FTSE 100 (#UKX)
The FTSE 100 had a negative week down -1.45%.
For the week ahead we could have a rebound up to 7,060. Should the index instead close below 6.980 we will consider 6.900 as the next target.
The index managed to close below the 50MA, an event that had not happened since March 2021 followed after by strong upward swings.
Friday's doji candle represents all the indecision of the moment: a break above the current resistance could lead the index to quickly test the 50MA and possibly even previous levels at 7.165.
On the other hand, a break of 6.980 could instead lead the index to test 6.900
MACD is crossing to the downside which could indicate the bearish moment of the index while the RSI is still in an intermediate phase at 40.
Support at 6,980
Resistance at 7.030
FTSEMIB (#FTSEMIB) The FTSEMIB had a week down -1.45%
For the week we confirm the bearish channel but expect a test of 25,000 in the near term
The FTSEMIB continues to remain below the 50MA. The MACD is confirming the bearish moment having crossed below 0. RSI has instead formed, together with the price, a higher low than on July 8th.
This could lead, at least in the short term, to a 25,000 test. On the other hand, a close below 24.688 could lead the index to test the current support.
Support at 24.454
Resistance at 24.930
The DAX ended the week down -1.21%
For the week, a close above 15.600 could bring the index back to 15.736. While a close below 15.500 would instead take it to 15.306.
We will wait for the closure of on one of the two levels to confirm its direction
The 50MA has played the role of intermediate support and a close above or below this could offer ideas for future swings.
MACD seems to crossover to the downside but for the moment still above 0, while RSI is not offering particular directions
Support at 15.306
Resistance at 15.736
The S&P 500 had a negative week down by -0.91%
For the week ahead, the index could continue the bearish move till 4.300.
The strong distance from the 50MA suggests a possible and gradual reconciliation.
MACD is crossing to the downside supported by a RSI in the same direction.
The index is approaching the low end of the uptrend channel where it could offer long short-term opportunities.
Support at 4,286
Resistance at 4.390
NASDAQ 100 (#NDX)
NASDAQ had a negative week down -1.22%
For the week ahead we are in favor of a retest of previous levels at 14.420 and 14.123
We believe that the Nasdaq risk/reward is now very much against a long position: despite having a very strong uptrend, looking at previous moves whenever the #NDX has moved more than 5% from the 50MA had then strong bearish movements.
A decisive bearish movement would not mean a change in trend, but rather a physiological rebalancing of the trend.
The MACD appears to want to cross to the downside
The RSI has now reached overbought, the last time was in September 2020
Support at 14,420
Resistance at 14.827
DOW JONES (#DJI)
The DOW JONES had a week down by -0.31%
For the week ahead, the index could test previous levels to proceed downwards to 34.440 in the short term.
The index seems to want to rejoin the 50MA: this could be a positive retracement for future bullish momentum.
MACD is crossing to the downside followed by a RSI in the same situation.
Once we have tested the 50MA, we will evaluate future index fluctuations.
Support at 34.261
OTB Globali Investments
18 July 2021