Financial index | Current price | Forecast | S1 | R1 | S2 | R2 |
​FTSE100 | 7.224 | Bearish/ Cons. | 7.220 | 7.330 | 6.980 | 7.405 |
FTSEMIB | 27.733 | Bearish | 26.750 | 27.870 | 26.184 | 28.700 |
DAX 40 | 16.160 | Bearish | 16.094 | 16.260 | 15.980 | 16.450 |
S&P 500 | 4.698 | Bearish/ Cons. | 4.600 | 4.720 | 4.550 | 4.800 |
NASDAQ 100 | 16.573 | Bearish/ Cons. | 15.700 | 16.620 | 15.152 | 16.600 |
DOW JONES | 35.602 | Consolidation | 35.455 | 35.772 | 34.800 | 36.482 |
S: Support R: Resistance
FTSE 100 (#UKX)
The FTSE 100 ended the week down -1.58%
For the week we expect a possible consolidation between 7,150 and 7,220
Indicators
Retracement week for the FTSE100 which has now tested the previous, and strong, level of 7,220.
For the week we expect a consolidation between this level and the 50MA to then eventually reverse to the upside.
MACD, reversed to the downside but still remains above 0
RSI, after leaving the overbought zone, is now at 45: intermediate resistance level tested several times in the past.
In the event that the index remains above the 50MA, we could expect strong bullish swings in the short term.
This week's retracement was very positive as it allowed the price to rejoin the moving averages and indicators to leave the overbought areas.
Support for 7,220
Resistance at 7,330
FTSEMIB (#FTSEMIB)
The FTSEMIB had a week down -1.27%
For the week we remain in favour of a retracement to 26,750
Indicators
The strong bearish candles at the end of the week are, in our view, the start of a possible downturn to 26.750, the previous resistance level now support.
MACD has just crossed to the downside along with the RSI which is now fluctuating at the 50 level.
The current support level is close to the 50MA: we consider 26,750 - 26,500 as a good level of bullish reversal for the FTSEMIB.
Support for 26,750
Resistance at 26,870
DAX (#DAX)
The DAX ended the week up + 0.39%
For the week ahead, we expect a slight decline to 15,980
Indicators
The German index pushed up again mainly thanks to the weakening of the EUR / USD exchange rate over the past week.
In our view, the last two bearish candles herald a slight retracement at least to previous resistance levels.
MACD is about to cross to the downside and RSI, still overbought, is gradually moving lower.
We identify the first level of reversal at 15.980. If it would be exceeded, we will aim at 50MA for further long positions.
A bearish week would allow the price to rejoin the moving averages and the MACD and RSI indicators to move away from overbought areas.
Support for 16.094
Resistance at 16,260