Weekly market brief: 30 August - 3 September 2021

FTSE 100 (#UKX)

The FTSE 100 ended the week slightly up + 0.11%.

For the coming week,it could consolidate between 7,100 and 7,150

Indicators

This week, the FTSE regained ground to position itself between the 50MA and the resistance area at 7,165.

In the past, the index was rejected and pushed to retest the 7,000 level.

MACD appears to be slightly up although in a bearish direction and the RSI after bouncing from 44 is not giving strong directions.

For the week we expect a consolidation between 7,150 and 7,100, where the break of either of these two levels could lead to strong moves.

Support for 6.980

Resistance at 7,165

FTSEMIB (#FTSEMIB)

The FTSEMIB had a week down by -0.46%

For the coming week we expect a consolidation between 25,800 and 26,150

Indicators

The index after the strong bullish moves started on 20 July until 13 August 2021 began a slight retracement that is now leading it to fluctuate at the 23.6% Fibonacci level.

At the moment both options are available as it could be a consolidation before further upside, which would then take us to new highs. On the other side, it could even be a consolidation before retesting 25,600.

MACD seems to be recovering slightly but with both moving averages down while the RSI has been substantially flat during the week.

The break of either level at 25,800 or 26,150 will bring further elucidation on future directions.

Support at 25,554

Resistance at 26.184

DAX (#DAX)

The DAX ended the week down -0.48%

For the week ahead, the price could consolidate between 15,736 and 15,900

Indicators

The DAX retested the 50MA and then closed the week below the intermediate resistance at 15,900.

While the formation of candles offers a bullish scenario, the MACD and RSI indicators suggest more bearish swings in the short term.

MACD crossed to the downside along with the RSI which broke the support level at 56 and, according to past moves, this led the index to test lower levels.

The divergence between price and indicators makes us remain cautious on the weekly swings by monitoring the intermediate levels of 15.900 and 15.736 where a break of the two leads to more marked swings.

Support for 15,736

Resistance at 16,050

S&P500 (#SPX)

The S&P 500 had a week up by + 1.00%.

For the week ahead, we expect a trace to 4,480

Indicators

The index managed to consolidate well above the previous resistance area, now support.

MACD, despite reaching a new high, was substantially flat with a hinted cross to the upside.

RSI in strong divergence with the price is approaching the overbought area.

Given the proximity to the top of the Bollinger band, coupled with the distance from the 9 and 50 MA, we expect a slight retracement to at least 4,480.

Support at 4,468

Resistance at 4.521

NASDAQ 100 (#NDX)

The NASDAQ ended the week up + 1.82%

For the week ahead, the index could retest the 15,300

Indicators

The NASDAQ managed to consolidate well above the previous resistance, now support.

MACD has crossed to the upside while the RSI is in strong divergence with the price

Given the strong momentum of the past two weeks, the index may now consolidate and retest the current support level again.

Support for 15,226

Resistance at 15.509

DOW JONES (#DJI)

The DOW JONES had a week slightly up + 0.36 %%

For the coming week, we expect a slight bullish continuation to 35,600

Indicators

The index is retesting the resistance area supported by a MACD about to cross to the upside, along with a rising RSI.

We do not believe that the DJI has the necessary strength to make strong upward momentum, a test of the previous high is possible but to then retrace downward.

Support for 35,096

Resistance 35,455

OTB Global Investments

28 August 2021