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Weekly market brief

๐Ÿ’ก5 - 10 April 2021

๐Ÿ“ˆ FTSE 100: 6,915.75 ( +2.65%)

๐Ÿ“ˆ FTSEMIB: 24,429.41 ( -1.14%)

๐Ÿ“ˆ DAX: 15,234.16 ( +0.84%)

๐Ÿ“ˆ S&P 500: 4,128.80 ( +2.71%)

๐Ÿ“ˆ Nasdaq 100: 13,900 ( +4.81%)

๐Ÿ“ˆ Dow Jones: 33,800.60 ( +1.95%)

The percentage increases are on a weekly basis

FTSE 100 (#UKX)

The #UKX had a very strong week up +2.65% where it managed to break above the ascending triangle and it is now floating at levels not see for more than a year.

From a technical perspective, we confirm the #UKX is on a bullish pattern breaking previous resistance level.

Despite being on a positive momentum we have enough indicators to believe how the FTSE may retest previous levels in the near future: the RSI has almost entered in overbought territory together with a MACD that is showing signs of a lighter momentum.

For the coming week we are in favour of a backtest till 6,800 before considering moves in either directions.

Support at 6,800 and resistance at 6,949


FTSEMIB (#FTSEMIB)

The #FTSEMIB, among the markets we cover, had a the worse week down -1.14% taking a break after the strong run up of the last period.


From a technical perspective, we confirm the positive momentum however we may see now a retrace to previous levels: in the history of the chart, when the Index has been relatively distant from the 50MA had always retraced it to it.

In addition, the RSI is now leaving the overbought territory together with a MACD that is curving down.


For the coming week, we wonโ€™t be surprised to see a retest of support level

Support at 23,975 and resistance at 24,949


DAX (#DAX)

The #DAX had a modest week up +0.84% entering what seems to be a consolidation mode.

From a technical perspective, the RSI is in overbought territory together with a RSI that is slowly curving down.

For the week ahead, we keep support and resistance tight because a break of one of the two levels would confirm a continuation to either upside or downside.

We are more in favour of a break of current resistance and test of 15,000

Support at 15,137 and resistance at 15,322


S&P 500 (#SPX)

The #SPX had a strong week +2.71% reaching, another, new all time market high.


From a technical perspective, the Index is in bullish context getting close to the upper end of the channel: history of the chart together with the current distance from the 9MA make us believing that the Index is on the way for a backtest.

The RSI is in overbought territory together with a MACD that is currently at level that, historically, led to pullbacks.


For the coming week, we might see a retest of current support before considering moves in either directions


Support at 4,078 and resistance at 4,156


NASDAQ (#NDX)

The #NDX had a very strong week up +4.81% going back at the level of mid-February 2021: it is too early to say whether this is a double top or an ascending triangle.


From a technical perspective, the RSI is reaching overbought territory but the MACD is signalling a strong momentum to the upside therefore is too early to draw a conclusion.

We will base our decision on the break of current levels: a break, and close, above current resistance would confirm a continuation to the upside and we will target 14,400.

On the contrary, if the #NDX will break current support we will be in favour of a re-test of the 50MA before considering move in either directions


Support at 13,540 and resistance at 13,845


DOW JONES (#DJI)

The #DJI had a positive week up +1.95% where it managed to close above the current upward channel reaching, another, new all time high.


From a technical perspective, the #DJI reached another high on relatively low volumes and a flat MACD: in addition, the RSI is now in almost overbought territory.

For the week ahead we would proceed with cautions on long positions as the setup, despite being bullish, is set for a backtest till at least 33,500.


Support at 33,237 and resistance at 34,192

OTB Global Investments

London, 12 April 2021

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