Index | Current price | Forecast | S1 | R1 | S2 | R2 |
​FTSE100 | 7.270 | Cons./ Bullish | 7.220 | 7.330 | 6.980 | 7.405 |
FTSEMIB | 26.611 | Cons./ Bullish | 25.820 | 26.750 | 24.935 | 27.406 |
DAX 40 | 15.532 | Cons./ Bullish | 15.040 | 15.736 | 14.815 | 15.980 |
S&P 500 | 4.620 | Consolidation | 4.600 | 4.720 | 4.550 | 4.800 |
NASDAQ 100 | 15.801 | Cons./ Bullish | 15.700 | 16.450 | 15.180 | 16.770 |
DOW JONES | 35.365 | Consolidation | 35.350 | 36.000 | 34.800 | 36.300 |
S: Support R: Resistance
FTSE 100 (#UKX)
The FTSE 100 ended the week down -0.34%
For the week we expect a bullish continuation to 7,330
Indicators
Fluctuating weekly led the FTSE100 to retest the intermediate support at 7,170 before reversing to the upside and ending the week above the 50MA.
MACD has crossed above 0 and seems to signal a change in the index's momentum.
RSI, after breaking the bearish trendline, this week performed a backtest and then reversed to the upside
Looking at the price action of the last few months, we can see a series of rising lows that began in September 2021 that could culminate in a continued bullish run for the end of the year.
The price appears to be supported also by the MACD and RSI indicators which have both reversed to the upside.
Support for 7,220
Resistance at 7,330
FTSEMIB (#FTSEMIB)
The FTSEMIB had a week down by -0.71%
For the week, we expect a bullish recovery to 27,000
Indicators
The price action of the last two weeks seems to want to form a "bull flag" which could soon break to the upside: extension of the flag could also coincide with the second resistance at 27.406.
MACD, despite a bearish week, is gradually proceeding to the upside
RSI, broadly flat and still at the level of 50
At the moment, the trend remains bullish also supported by what appears to be a continuation pattern.
Support at 25,820
Resistance at 26,750
DAX (#DAX)
The DAX ended the week down -0.68%
For the week ahead, we expect a possible upside to at least 15,736
Indicators
Despite a slightly bearish week, we see these swings as a possible consolidation before continuing to the upside.
The index managed to close the gap and is respecting the intermediate support at 15,420
Despite a negative week, MACD is gradually moving higher
RSI is now fluctuating just below the 50 level, a breakout of it could therefore support an upward push
The hammer candle formed on Friday and the respect of the intermediate support coupled with the MACD and RSI indicators lead us to be in favour of a bullish push for the week ahead.
Support for 15.040
Resistance at 15,736
S&P500 (#SPX)
The S&P 500 had a week down by -1.73%
For the coming week, the index could consolidate between 4,600 -4,680
Indicators
The American index continues to confirm the ascending triangle in place since October 2021 and the week just ended confirms the strong support and resistance levels: we deduce that a break of the two levels could then lead to strong fluctuations.
The primary trend remains bullish even though MACD and RSI are both reversing to the downside.
For the week ahead we expect an initial consolidation between 4,600 - 4,680 with a possible test of resistance at 4,720
Support for 4,600
Resistance at 4,720
NASDAQ 100 (#NDX)
The NASDAQ ended the week down -3.02%
For the week ahead, we expect a possible bullish recovery to 16,200
Indicators
The tech index continues its wide lateralization between 15,700 and 16,450 and in the short term, we could see a recovery of vigour at least up to the area of resistance.
MACD and RSI at the same time are indicating a fairly marked loss of strength: MACD is about to cross downwards the 0 line and the RSI is already below 50
The Friday candle can be identified as an "inverted hammer candle" and as an inversion candle, it will only give more information on the following day: a positive week opening could in fact lead the index to regain ground before the Christmas break.
In the very short term we remain bullish on the Nasdaq but believe there may be bearish pressure in early January.
Support at 15,700
Resistance at 16,450
DOW JONES (#DJI)
DOW JONES had a week down -1.49%
For the week ahead, we expect a consolidation at 35,350 - 36,000
Indicators
The index continues to respect the strong support area, which exceeding it would lead to a drop to at least 34,800.
MACD, after a recovery in strength, seems to want to cross again to the downside
RSI is now hovering around the 50 level
For the week ahead we will be looking at the breakout of one of the two levels (35,350 and 36,000) as an indicator of stronger swings in both directions.
Support for 35,350
Resistance 35,455
OTB Global Investments
19 December 2021