top of page

Weekly market brief: 20 - 24 February 2023


Financial index

Current price

Forecast

S1

R1

S2

R2

​FTSE100

8,004

Cons./ Bearish

7,400

8,050

7,200

8,160

FTSEMIB

27,715

Cons./ Bearish

24,800

27,900

24,000

28,400

DAX 40

15,482

Cons./ Bearish

14,200

15,500

13,800

15,800

S&P 500

4,079

Consolidation

3,750

4,200

3,600

4,300

NASDAQ 100

12,358

Consolidation

11,000

12,700

10,500

13,300

DOW JONES

33,826

Consolidation

31,200

34,500

30,200

35,000

TADAWUL

10,548

Consolidation

10,000

11,200

9,700

11,700

FTSE ADX

9,977

Consolidation

9,680

10,300

9,680

11,000

DFM

3,457

Consolidation

3,270

3,500

3,100

3,730

S: Support R: Resistance

FTSE 100 (#UKX)

The FTSE100 index had a week up by +1.55%

For the week ahead we are in favour of a possible consolidation in the 7,900 area


Indicators

Positive week for the British index that saw the price holding at all time high


The strong upward extension makes us remain skeptical and we believe that the surrounding scenario is in any case very fragile: at the same time it is advisable not to fight the strong price action but rather wait for a break of the 5MA that has been holding the price since the end of 2022.


MACD and RSI keep remaining in overbought territory and in a strong negative divergence with the price. Important to notice that they have reached very high readings also on a weekly basis.


The risk-reward is unbalanced in favour of downsides but we believe it is appropriate to wait for price signals: specifically, the three obstacles to overcome on the downside are the 9-day average (red line) and the price level at 7.800 in the very short term term. Then it will be necessary to see how the price will behave near the 50-day average (yellow line) to forecast next moves.


We remain bearish on the FTSE100 given the over-extension to the upside and we rather wait for a first dip below 7,800.


Support at 7,400

Resistance at 8,050



FTSEMIB (#FTSEMIB)

The FTSEMIB index had a week up by +1.77%

We are in favour of a consolidation in the 27,000 area for the week ahead