Weekly Market Brief: Expectations For The FTSE 100, DAX, NASDAQ 100, S&P 500, Dow
Francesco Bergamini | Apr 30, 2022 10:48AM ET
The FTSE FT100 TR (UKX) ended the week up by + 2.04%. For the week ahead, we could see a downward consolidation between 7.400-7.450 to then move higher.
The British index continues to remain on a lateral channel since the beginning of 2022, except for the first weeks of March which quickly recovered.
In the short to medium term, we believe that this price action between 7.405-7.675 could continue together with any reversals quickly resumed and bought by the market.
MACD and RSI present a positive scenario, as the former continues to remain above the 0 line (positive momentum) and the RSI has exceeded the level of 50 (bullish).
We remain neutral on the FTSE100 and believe that possible market reversals, also due to a recovery in the GBP/USD, can offer interesting long opportunities.
Support at 7520
Resistance at 7.675
The FTSE MIB Net Total Return (Lux) had a week up by + 1.57%. For the week ahead, we could see a consolidation around 24.000.
The FTSEMIB has remained in the wide range between 24.000 and 25.000 since mid- April. In the coming week, consolidation at the bottom of this channel is expected, followed by a possible break of the long bearish trendline in place since the beginning of 2022.
The 50MA (yellow line) continues to play the role of dynamic resistance while MACD and RSI seem to suggest a possible recovery. MACD seems to be close to crossing to the upside and a breakout of 0 (positive momentum) while the RSI is very close to the 50 line.
We are positive on the FTSEMIB but expect strong volatility in the short term which we believe will lead to a gradual reversal to the upside.
Support at 24.000
Resistance at 25.000
The DAX ended the week up by +1.63%. For the week ahead, we look favorably at a consolidation between 14.000 -14.400.
Get The News You Want
The index continues to move near the 50MA (yellow line) where we believe we could soon see a break to the upside.
MACD and RSI in our opinion support the thesis with MACD being very close to crossing the 0 line upwards (positive momentum) and RSI near the 50 line (bullish).
If the index manages to stay above the 50MA, at around 14,400, we could see a bullish recovery in the DAX together with strong buying volumes.
Support at 14.050
Resistance at 14.815
The S&P 500 had a week down by -2.36%. For the week ahead, we anticipate a recovery to at least 4.300.
We believe Friday's strong bearish candlestick may still have selling repercussions earlier in the week. At the same time, we believe that the strong downward extension shifts the risk/reward ratio more in favor of possible upside rather than a continuation to the downside.
MACD and RSI are both very extended to the downside with the latter very close to the oversold area.
We are positive on the S&P 500 and we believe that the index could consolidate between 4.050 and 4.150 and then reverse to the upside.
Support at 4.125
Resistance at 4.385
The NASDAQ ended the week down -3.25%. For the week ahead, we see a consolidation at 13.000, which will then reverse to the upside.
Despite another bearish week, we believe that the index may soon begin a slow upward recovery. The swings of the week just ended led the NASDAQ to test the upper part of the bearish trendline broken in mid-March.
MACD and RSI are both extended to the downside, which makes us shift the risk/return ratio in favor of possible price recovery followed by a trend reversal.
The price action on the trendline combined with the extension of internal indicators has us remaining positive on the NASDAQ 100.
Support at 12.795
Resistance at 13.855
The Dow Jones Industrial Average had a week down by -1.65%. For the week ahead, we expect a recovery at least to 34.000.
Friday's selling pressure we believe may extend slightly into this week's opening as well. At the same time, the proximity to the strong support area makes us lean towards a possible consolidation of the DJI followed by reversal to the upside.
MACD and RSI are both negative, with the latter still above the bearish trendline.
The strong support level combined with fairly extensive downward internal indicators make us more inclined towards a recovery of the index.
Support at 32.700
Resistance 35.515
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.