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Weekly market brief: 22 - 26 November 2021


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