💡22 - 27 November 2020
📈 FTSE 100: 6,367.58 (+ 0.35%)
📈 DAX: 13,335.68 (+ 0.91%)
📈 S&P 500: 3,638.35 (+1.67%)
📈 Nasdaq 100: 12,205.85 (+ 2.63%)
📈 Dow Jones: 29,910.37 ( +1.55%)
FTSE 100 (#UKX)
The FTSE 100 this week was once again pushed higher on, initially, positive vaccine news. It reached a slightly higher lever compared to 16th November 2020 at 6468 and than it moved lower for the end of the week.
On a weekly time frame the FTSE 100 looks positive however it is more the daily time frame that raise caution on our side.
From a technical perspective, we can see three levels:
6,185 - 6,290
6,290 - 6,386
6,386 - 6,462
At the moment, the UK Index is moving almost sideways between the 6,290 - 6,386 making the 6,290 a stronger area of resistance, proved also for a 5MA that is moving higher.
Having said that, we cannot ignore the MACD indicator: the index is inevitably approaching a correction to the downside therefore we are more keen to see pullbacks rather than upsides in the coming week.
For the near future, given also lower highs, we are expecting a retest of the 6,290 level. If high bearish volumes will be reported in this area further downside could be expected and test 6,220 (5MA) either 6,185 (resistance level).
The German index moved higher this week following the overall optimism on vaccine news and a soon return to normality.
The DAX overcome the area of resistance, which is now from a technical perspective support.
If from a weekly perspective, the DAX is giving a bullish perspective is more a daily time frame that we might see slight pullbacks.
For the near future we expect a retest of the 13,000 level to then either reverse and move higher or continue to the downside.
S&P 500 (#SPX)
The S&P had another incredible week pushing higher and retesting the upper end of the megaphone pattern.
At the moment, we must proceed with caution on this index as the divergence between the price and RSI is definitely a cause of concern together with the dojo candle of Friday. The index is reporting higher highs but the trend is overall weaker than a few weeks ago.
We might expect for the near future a retest of the 3,560 level: on this level we will then need to understand the volumes. If strong bearish volumes will be reported further downside could be met.
Dow Jones (#DJI)
The Dow finally managed this week to reach the all time high at 30,000: milestone target.
After the celebration, we need however to invite our reader to proceed with cautions
There is a strong divergence between RSI and Price that is leading us to think that a pullback might be on the horizon: there is a strong area of resistance at 29,225 before the gap that sooner or later will be filled.
We want our readers to be prepared rather scared: from a technical perspective, we also see a MACD that is wearing together with a doji candle on Friday.
For the near future, our target is the 29,200 level
Among the major index, the Nasdaq is the one that this week moved the most to the upside with a strong +2.63%.
The Index is now once again, testing the major resistance from September 2020
Seen the strong momentum to the upside and the overall bullish context (especially on a weekly timeframe) we might expect move to the upside.
Slight pullback to the 12,000 level might be expected
From a technical perspective, the MACD is showing positive movement and RSI is slopping up.
The reason why we are also particularly bullish on the Nasdaq is also because of the ascending triangle that in our opinion is taking place. The Index is trying for the fourth time to break the resistance level support by higher lows.
OTB Global Investments
London, 29 November 2020