Financial index | Current price | Forecast | S1 | R1 | S2 | R2 |
​FTSE100 | 7,556 | Bearish | 7,200 | 7,600 | 7,100 | 7,670 |
FTSEMIB | 24,621 | Bearish | 22,500 | 24,850 | 21,000 | 25,500 |
DAX 40 | 14,529 | Bearish | 13,100 | 14,550 | 12,650 | 15,000 |
S&P 500 | 4,071 | Cons./ Bearish | 3,750 | 4,100 | 3,600 | 4,180 |
NASDAQ 100 | 11,994 | Consolidation | 10,400 | 12,000 | 10,000 | 12,700 |
DOW JONES | 34,429 | Cons./ Bearish | 31,200 | 34,500 | 30,200 | 35,000 |
TADAWUL | 10,882 | Cons./ Bullish | 10,800 | 11,950 | 10,500 | 12,270 |
FTSE ADX | 10,552 | Consolidation | 9,900 | 10,750 | 9,680 | 11,000 |
DFM | 3,323 | Cons./ Bullish | 3,270 | 3,500 | 3,100 | 3,730 |
S: Support R: Resistance
FTSE 100 (#UKX)
The FTSE100 index had a week up by +0.93%
For the week ahead we are in favour of a retracement on the area of 7,400
Indicators
Positive week for the British index that sees the price keep moving close to the strong level already reached in August.
Despite a further positive week we believe that the risk/reward on the UKX is now heavily unbalanced in favour of short-medium term downside. We believe that there are two important factors to support this thesis: the first is the price action, in fact we can see that throughout 2022 the FTSE 100 has fluctuated on a wide lateral channel between 7,000 - 7,600.
The second aspect is internal indicators: MACD and RSI are now very extended to the upside, with the first seeing a slowdown in histograms and the RSI remaining in overbought territory.
Combining price action and internal indicators we can see that at current levels, the British index has more often fluctuated downwards rather than upward. The first sign of reversal we believe will come from the breaking of the 9-day moving average (red line), which has supported the price from mid-October till today.
We are bearish on the FTSE 100 and awaiting substantial drawdowns before considering long setups.
Support at 7,150
Resistance at 7,600
FTSEMIB (#FTSEMIB)
The FTSEMIB index had a week do