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Weekly market brief: 24 - 28 May 2021



FTSE 100 (#UKX)

he FTSE had a negative week down -0.56% where reaching 7,100 fall back to retest the 50MA.

For the week ahead, the #UKX might enter in a consolidation phase between 7,035 and 6,930 unless it manages on the first part of the week to break above current resistance.

Indicators

From a technical perspective, the trend is once again bullish, and this consolidation phase might help for future move higher.

MACD and RSI are both decreasing signalling a slower momentum .

A break of current resistance might lead the Index higher till 7,100.

The 50MA is holding very strong at 6,900: we believe the #UKX in the short term will keep bouncing back from such level.


Support at 6,900 and resistance 7,035


FTSEMIB (#FTSEMIB)

The FTSEMIB had a positive week up +0.31% and as highlighted last week, the index managed to reach the 25,000 level.

For the week ahead we expect the #FTSEMIB to re-test 24,949 before eventually keep moving higher, a failed bounce from such level will lead the index to retest the 50MA.

Indicators

From a technical perspective, the index is starting to break the upper end of the channel: which is a bullish signal and may lead the #FTSEMIB even higher in the short term.

The MACD is giving now a better momentum picture which may support the further leg higher, on the contrary the RSI is showing divergence with the price: this may lead to short term downside that could represent could entry points.


Support at 24,716 and resistance at 25,223


DAX (#DAX)

The DAX had, once again, a very volatile week down -0.05% where it tested once again the 50MA and bounced back at almost market high.

For the week ahead, we believe the #DAX has a positive momentum that will lead to break current resistance and reach 15,430.

Indicators

From a technical perspective, the further bounce from the 50MA of this week confirmed the very bullish trend. We believe the Index is forming an ascending triangle that will soon lead to break current resistance.

MACD is signalling a bullish crossover despite an RSI that is showing divergence with the price.

Support at 15,135 and resistance at 15,510


S&P 500 (#SPX)

The S&P 500 had a negative week down -0.18% where it managed to test the 50MA and got then rejected at 4,190.

For the week ahead, we believe the #SPX might take a bit of pause and consolidating between 4,190 and 4,125 before keep moving higher.


Indicators

From a technical perspective, the MACD is signalling a growing positive momentum while the RSI is showing divergence with the price. The slowing momentum will lead to strong moves in either direction: based on the current setup we still believe the move will be to the upside.


Support at 4,125 and resistance at 4,190


NASDAQ (#NDX)

The Nasdaq had a positive week up +0.77% positioning itself for further moves to the upside.

For the week ahead, we believe the #NDX has positive momentum to the upside: we will target 13,750 before considering further moves.

Indicators

From a tecnica perspective, the #NDX managed to re-enter the upward trendline.

In addition, the MACD is crossing over and getting closer to 0: this will reinforce the bullish momentum. The RSI, has recently broke the downward trendline and could easily reach the 60 level in the short term.

We believe the Index is set to break current resistance and reach at least 13,750.

Support at 12,758 and resistance at 13,540


DOW JONES (#DJI)

The Dow Jones had a negative week down -0.40% where it kept floating at resistance level.

For the week ahead, we believe the #DJI might consolidating between 34,200 and 33,900 before keep moving higher.


Indicators

From a technical perspective, the consolidation phase is also signalled by the Index keep trading around the 9MA.

The MACD is potentially on the path for a crossover together with the RSI that has room to drift higher.

The 50MA is holding strong and we don’t think it will be soon broken.


Support at 33,671 and resistance at 34,261

OTB Global Investments

22 May 2021


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