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Weekly market brief: 9 - 13 January 2023


Financial index

Current price

Forecast

S1

R1

S2

R2

​FTSE100

7,699

Cons./ Bearish

7,300

7,750

7,200

7,850

FTSEMIB

25,180

Consolidation

23,000

25,500

22,000

26,200

DAX 40

14,610

Consolidation

13,400

14,650

13,000

15,000

S&P 500

3,895

Cons./ Bullish

3,750

4,100

3,600

4,180

NASDAQ 100

11,040

Cons./ Bullish

10,400

12,000

10,000

12,700

DOW JONES

33,630

Cons./ Bullish

31,200

34,500

30,200

35,000

TADAWUL

10,531

Cons./ Bullish

10,000

11,200

9,700

11,700

FTSE ADX

10,197

Consolidation

9,900

10,750

9,680

11,000

DFM

3,302

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 +3.32%

For the week ahead we are in favour of a possible retracement to the 7,500 area


Indicators

Very positive week for the British index which returns to the 2022 highs'.


The area of 7,000-7,750 represents a strong resistance that has never been overcome and we believe that even in this case there is not the necessary strength to proceed further upwards. Has happened before, a move up is usually proceed by a retracement first.


MACD and RSI are both very extended to the upside with the latter in overbought territory and negative divergence with the price action.

The price action regularity during 2022 we believe to be a strong direction indicator for the index and we reiterate that risk/reward is now in favour of possible market reversals. In addition, the exit from the Bollinger bands keeps us even more defensive for the week ahead


We remain bearish on the FTSE 100 and await a sizeable market reversal.


Support at 7,300

Resistance at 7,750




FTSEMIB (#FTSEMIB)

The FTSEMIB index had a week up by +6.22%

For the week ahead we