Weekly Brief And Forecasts For The FTSE, DAX, NASDAQ 100, S&P 500 And Dow Jones
Francesco Bergamini | Jul 23, 2022 05:14PM ET
The FTSE 100 ended the week up by +1.64%. We could see a bullish continuation up to the 7.400 area this week.
Positive week for the British index, which is now close to the strong resistance level and the 50MA (yellow line): given the bullish push, we believe that the UKX can consolidate within the narrow range between 7,200-7,300 to then break toward the upside.
MACD and RSI seem to support the bullish push as the former is close to crossing the 0 line (positive momentum), and the RSI is now above the 50 line (bullish).
Another positive note is having closed the week above the 9-day average (red line). We remain positive on the FTSE100 and favor short- to medium-term rises.
- Support at 6.960
- Resistance at 7.300
The FTSE MIB had a week up by + 1.33%. For the week ahead, we could see a possible bullish continuation to 22.000.
The long support area at 21,000 - 21,500 continues to hold the Italian index: this area was respected both at the end of 2021 and in March 2022.
MACD and RSI are showing rising lows in the face of substantially flat price action: the positive divergence between price and indicators makes us lean towards a possible break of the bearish trendline.
The primary trend remains strongly to the downside, only a consolidation above the 9-day average (red line) at 21.200 could open the door to significant rises.
We remain positive on the FTSEMIB and believe we may soon see short to medium-term upsides.
- Support at 20.700
- Resistance at 23.650
The DAX ended the week up by + 3.02%. For the week ahead, we could see a bullish recovery to at least 13.500.
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The break of the bearish channel is, in our opinion, very positive from a short-medium term perspective. Given the strong stretches, the index might retrace slightly to 13,000 to resume the bullish push.
MACD and RSI seem to support the advance of the German index, with the former near the 0 line (bullish momentum) and the RSI above 50 (bullish).
We remain positive on the DAX40 and in favor of further short to medium-term gains.
- Support at 12.600
- Resistance at 14.050
The S&P 500 had a week up by + 2.55%. For the coming week, we are in favor of consolidation above 4,000.
Last week we saw the SPX break the symmetrical triangle to the upside and consolidate above the 50MA (yellow line). For the short-medium term, we believe it is a very positive sign as it may lead to a trend change and the beginning of a short bullish phase.
MACD and RSI support the push, with the former close to a breakout of the 0 line (positive momentum) and the RSI now greater than 50 (bullish).
At the same time, given the strong stretches of recent days, we are not excluding a backtest on the area of 3,900 to continue the upside move.
We remain positive on the S&P500 in the short to medium term.
- Support at 3.740
- Resistance at 4.000
The NASDAQ ended the week up by + 3.45%. For the week ahead, we believe the index could push to at least 12,800.
The week just ended, and saw the break of the ascending triangle and consolidation above the 50MA (yellow line). In the short-medium term, we believe it is emerging as a very optimistic scenario that could give rise to further upside.
MACD and RSI support the recovery in vigor: the former cross to the upside and is now above 0 (positive momentum). The second, RSI, has largely broken out of the 50 (bullish) line and is now retracing slightly.
Given the significant stretches, we do not exclude a possible backtest on the area of 12.100 - 12.200 to then continue to rise.
It is important to point out the central role played by the 50MA (yellow line), which has represented the main dynamic resistance of the NDX since the beginning of 2022.
Despite its recent overcoming, we believe it is appropriate to wait for price confirmations to avoid "False break" scenarios similar to those at the end of March 2022. A possible confirmation could come from exceeding 12,800.
We remain positive on the NASDAQ100 from a short to medium-term perspective.
- Support at 10.700
- Resistance at 12.400
The Dow Jones Industrial Average had a week up by + 1.95%. For the coming week, we favor a possible continuation to at least 32.800.
h2 Indicators/h2After more than two months, the week just ended, and we saw the DJI close above the 50 MA (yellow line), which we believe to be a positive signal for short to medium term.
Given the considerable stretches, we do not exclude a possible retracement on the area of 31,200 and then, in our opinion, proceed upwards.
MACD and RSI seem to support the resumption of the index's strength, with the former close to a break of the 0 line (positive momentum) and the RSI well above the 50 line (bullish).
We remain positive on DOW JONES in short to medium term.
- Support at 29.200
- Resistance 32.000
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