Weekly market brief: 31 May - 4 June 2021


FTSE 100 (#UKX)

The FTSE had almost a flat week up +0.03% in a consolidation as we highlighted: given the current moves, we will look for a break of specific levels for the new targets.

For the week ahead, a break of 7,000 may lead the Index to test 6,900. On the contrary, a close above 7,050 may lead to current resistance at 7,145.


Indicators

From a technical perspective, we can clearly see both upward and downward trendline that are now arriving at conjunction: a break of one of the two levels may lead to stronger moves.

MACD and RSI are not giving, at this moment, particular direction.

A positive note is for sure given by a rising 50MA which can act as strong support in case of pullbacks.


Support at 6,900 and resistance 7,035


FTSEMIB (#FTSEMIB)

The FTSEMIB had a positive week up +1.24% setting itself for further upside.

For the week ahead, given the strong bullish move we might see a re-test of previous level at 25,000 before keep pushing higher till resistance level at 25,223.


Indicators

From a technical perspective, the Index managed to break on strong volumes the 25,000 level: we expect now a retest of this level before keeping moving higher.

The MACD is showing now an increasing momentum compared to the beginning of May, the RSI is pointing higher however showing a slight negative divergence with the price.


Support at 24,716 and resistance at 25,223


DAX (#DAX)

The DAX had a positive week up 0.67% where however didn’t manage to break current resistance level.

For the week ahead, we believe the Index might keep moving between 15,400 -15,570 before keep moving higher


Indicators

From a technical perspective, the Index seems to exit the consolidation area that has been taking place since April 2021.

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

Support at 15,135 and resistance at 15,540


S&P 500 (#SPX) The S&P 500 had a positive week up +0.56% where it managed to consolidate within the existing level.

For the week ahead, despite a possible test of 4,180 the Index may reach previous high at 4,236.


Indicators

From a technical perspective, the MACD is signalling a growing positive momentum together with an imminent crossover while the RSI is showing divergence with the price.

We believe the current sideways move is a consolidation before a further move higher

Support at 4,190 and resistance at 4,252


NASDAQ (#NDX)

The Nasdaq had a positive week up +1.17% positioning itself for further moves to the upside.

For the week ahead, the #NDX might re-test 13,600 before keep moving higher: our final target remains the previous high at 14,047.


Indicators

From a tecnica perspective, the #NDX managed to overcome the ascending triangle.

In addition, the MACD has crossed over and approaching the 0 level: a cross above 0 will confirm the bullish momentum.

The RSI has broken the downward trendline and has now room to proceed higher

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


Support at 13,540 and resistance at 14,047


DOW JONES (#DJI)

The Dow Jones had a positive week up +0.51% positing itself for a further move higher.

For the week ahead, we believe the #DJI will target current resistance at 34,800.


Indicators

From a technical perspective, the MACD is crossing over together with a RSI that is pointing as well to the upside.

The close above the 9MA has generally lead to further upside: the possible test of previous high might lead to a double top formation, however is still too early to understand it.

Support at 34,261 and resistance at 34,800

OTB Global Investments

31 May 2021

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