Weekly market brief: 4 - 8 October 2021

The FTSE 100 ended the week down -1.39%

For the week, we expect a potential consolidation between 6,980 and 7,080


Indicators

This week the FTSE after recovering from the strong selloff has positioned itself just above the support at 6.980.

It is currently too early to identify the current formation as a bull flag or as a mild recovery before further selling.


Both MACD and RSI appear to want to cross to the downside after a notable recovery.


Having indicators and chart formation that are currently describing discordant situations, while remaining bullish on the FTSE100, we see the area between 6,980 and 7,080 as a limits for strong moves in either directions.


Support for 6.980

Resistance at 7,165


FTSEMIB (#FTSEMIB)

The FTSEMIB had a week down -2.25%

For the week we could see a recovery to at least 25,800.


Indicators

After testing the strong resistance area, the Italian index reversed to the downside but the failure to reach a new low makes us think of a recovery during the coming week.


MACD is currently below 0 underlining the loss of momentum while the RSI is testing the previous trendline.

Given the strong bullish volumes on Friday, we expect a reconciliation with the 50MA at 25,800.


Support at 25,554

Resistance at 26.184


DAX (#DAX)

The DAX ended the week down -3.62%

For the week ahead, we expect a bullish recovery to 15,500


Indicators

The German index is certainly the market that suffered the most the bearish last week.

Given the considerable distance from the 50MA, we expect a recovery of ground in the first part of the week.

If MACD below 0 is in line with the negative momentum of the index, it is more the RSI to support the theory of an upside: in fact, despite reaching a new low, the RSI has remained almost unchanged.

This positive divergence suggests a recovery of at least 450 points for the week ahead


Support for 15.135

Resistance at 15,306


S&P500 (#SPX)

The S&P 500 had a week down by -2.0%

For the week ahead, the index could move upwards to 4,430.


Indicators

Once the lower part of the uptrendline was tested, the index fell back to the support level.

MACD and RSI both point to a bullish recovery in the short term: the first one, although below 0, seems to want to cross to the upside. Combined with the second oscillator which is now in a slight positive divergence with the previous candle at 4.320.


We believe that a recovery to nearly the 50MA could be optimal before starting a short consolidation phase.


Support at 4,286

Resistance at 4.390


NASDAQ 100 (#NDX)

The NASDAQ ended the week down -2.56%

For the coming week, the index could recover ground to 15,152


Indicators

Despite a previous close above the 50MA, the week was quite negative, leading the index to test the support at 14,552.


MACD is crossing to the upside along with a RSI that has just touched the oversold zone.

Given the distance from the 50MA, the index could now move upwards to 15,152: the last three candles seem to want to form a bottoming between 14,775 and 14,552.


Support for 15.152

Resistance at 15,702


DOW JONES (#DJI)

DOW JONES had a week down -1.73%

For the coming week we expect a recovery up to 34,800.


Indicators

The further test at 33,800 makes us think of a possible double bottom formation with a subsequent recovery up to at least 34,800.


Both MACD and RSI indicators, as well as the price, have recorded higher lows than in the past few weeks.

Coupled with a considerable distance from the 50MA, we believe this week may offer a bullish recovery.


Support for 34.261

Resistance 35,096

OTB Global Investments

4 October 2021

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