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Weekly market brief: 5 - 9 December 2022


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