Weekly market brief: 2 - 6 August 2021


FTSE 100 (#UKX)

The FTSE 100 ended the week up + 0.54%

For the week ahead we confirm our target at 7,150


Indicators

This week the index broke the intermediate resistance at 7.020, retest it and then proceed to the upside. We believe the conditions are in place for a further extension up to 7,150 where the index could then move downwards.

MACD crossed to the upside along with a RSI which broke the bearish trend line.


The 50MA has played the role of a barrier in the last few days, exceeding it would confirm ever more our target.


Support at 6,980

Resistance at 7.165


FTSEMIB (#FTSEMIB)

The FTSEMIB had a positive week up + 1.18%

For the week ahead, we expect a retracement to at least 25,200. A strong break of it could bring the FTSEMIB to 25,000.


Indicators

The FTSEMIB managed to recover ground and close above the 50MA, a positive sign that confirms the upward trend.

Bullish confirmation is given both by the MACD which has crossed to the upside and is approaching 0, and by the RSI which has broken through the resistance at 54 and is now seating above it.


The index managed to break the bearish channel in place since the beginning of June 2021, for this reason we expect a re-test and then a continuation to the upside


Support at 24.930

Resistance at 25.554


DAX (#DAX)

The DAX ended the week with a slight fall of -0.19%

For the week we expect a consolidation between 15,680 and 15,430: a break of these two levels will lead the index to stronger moves in either directions.


Indicators

After the strong bullish push from the support level, the index settled around the 50MA. MACD is basically flat and RSI has not managed to overcome the resistance level at 54.


There are currently two possible scenarios: a bullish one that sees in this formation a "bull flag" with an overcoming of the 50MA and following push to current resistance.

From a bearish point of view, on the other hand, the failure to re-test 15,700 could highlight a weaker trend that could curve downwards in the short term.


The intermediate levels of 15,680 and 15,430 will be fundamental to understand the following targets of the DAX.


Support at 15.306

Resistance at 15.736


S&P500 (#SPX)

The S&P 500 had a week down slightly by -0.35%

For the week ahead, we expect a retracement to 4,360


Indicators

The index, after reaching a new high, could now test previous levels given a MACD that is losing momentum and seems to want to cross to the downside. This is combined with an RSI that is in strong divergence with the price if we compare the levels between 2 and 29 July 2021.


The trend remains strongly bullish but a retracement of it could offer further long positions. We see a first bearish target at 4.360, an intermediate support/resistance level


Support at 4.390

Resistance at 4.468


NASDAQ 100 (#NDX)

NASDAQ had a week down -0.61%

For the week ahead, the index could track down to 14.827. A strong break of this level could lead the index to 14,500


Indicators

The Nasdaq after testing a new high could be set a slight retracement. The MACD is signalling a gradual descent despite a very bullish trend and the RSI is showing a strong divergence with the price when we compare the levels between 7th and 29th July 2021.


We could mention a possible "head and shoulders" formation with the neckline at 14,420 but it is still too early to confirm it.

For the short term we expect a retracement to the current support.


Support at 14.827

Resistance at 15.226


DOW JONES (#DJI)

DOW JONES had a week down -0.37%

For the week ahead, we expect a retracement to 34,600


Indicators

The index was again rejected by the strong resistance level at 35,096 and in the short term we expect a retracement to 34,600, a level that coincides with both the 50MA and the bottom of the upward channel.


MACD seems to want to cross to the downside along with a RSI which has been rejected by the resistance level at 60.


Support at 34.261

Resistance 35.096

OTB Global Investments

1 August 2021

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