FTSE 100
The FTSE 100 ended the week down by 0.52%. We could see a bullish recovery for the coming week, at least up to the 7.300 area.
Indicators
Despite a broadly flat weekly performance, we believe there has been a very interesting price action: the continued consolidation above 7,000 could lead to short to a medium-term upside.
The ongoing consolidation also allows MACD and RSI to move higher, forming a positive divergence between indicators and price. While both MACD and RSI are still in bearish territory, we notice higher lows.
The first target to reach, and exceed, is the resistance at 7.300. We are positive about the FTSE100 in short to medium term.
- Support at 6.960
- Resistance at 7.300
FTSE MIB
The FTSE MIB Futures was down by -3.86% last week. For the week ahead, we could see a gradual upward recovery to at least 21.500.
Indicators
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.
Despite the creation of a new low in the price action, we remain in favor of a "bottoming" phase of the index given short-medium term rises.
Positive divergence between indicators and price exists. In the face of a decreasing price, MACD and RSI are showing higher lows. Despite still being both in bearish territory.
The primary trend remains strongly to the downside, only a consolidation above the 9MA (red line) at 21,200 could generate significant upside potential.
We remain positive on the FTSE MIB and believe it could soon see short to medium-term upside.
- Support at 20.700
- Resistance at 23.650
{{|DAX}}
The DAX ended the week by -1.16%. For the week ahead, we could see a bullish recovery to at least 13,400.
Indicators
The very short-term bearish channel continues in conjunction with the strong support at 12.600. The price is currently at the top of that channel which we believe may soon be broken to the upside.
The strong bullish candle on Friday makes us lean towards short-medium rises: a possible consolidation above the 9MA (red line) could further support this thesis.
Once we cross the short-term channel and the 9MA, we believe a reasonable first target could be the 50MA (yellow line) at 13.600.
MACD and RSI show a strong positive divergence with the price: the former has crossed to the upside, and the latter is now very close to the 50 (bullish) line.
We remain positive on the DAX40 and believe the index may soon reverse to the upside.
- Support at 12.600
- Resistance at 14.050
S&P 500
The S&P 500 had a week down by -0.93%. For the week ahead, we favor a bullish recovery to at least 4.000.
Indicators
We believe the "trading range" between 3.740 and 3.900 is allowing the SPX to consolidate and eventually be able to break to the upside the 50MA (yellow line), which has played the role of dynamic resistance starting from January 2022.
MACD and RSI, in the face of fairly flat price action, are instead showing higher lows, creating a positive divergence between price and indicators.
MACD, after having crossed the upside, is now close to crossing the 0 line (positive momentum), and the RSI is now very close to the 50 line (bullish).
We remain positive on the S&P 500 in short to medium term.
- Support at 3.740
- Resistance at 4.000
NASDAQ 100
The NASDAQ ended the week down by -1.17%. For the week ahead, we believe the index could stretch to at least 12,800.
Indicators
The week just ended seems to form an ascending (bullish) triangle, suggesting an imminent break of the resistance and breakout from the 50MA (yellow line).
MACD and RSI are supporting the recovery: the former has crossed its respective moving averages and is also signaling a positive divergence with the price. The second, RSI, has just crossed the 50 mark (bullish).
It is important to note the central role played by the 50MA (yellow line) which has represented the main dynamic resistance of the NDX since the beginning of 2022: its overcoming will most likely lead to a trend reversal. However, it will be appropriate to wait for confirmation of price in such a way as to avoid "false break" scenarios at the end of March 2022.
We remain positive on the NASDAQ100 from a short to medium-term perspective.
- Support at 10.700
- Resistance at 12.400
Dow Jones
The Dow Jones Industrial Average had a week down by -0.16%. For the week ahead, we favor a bullish continuation to at least 32,000.
Indicators
Despite a slightly negative weekly performance, we believe the price action has been very significant and may open the door to short medium-term rises. We consider that the price ended the week above the 9MA (red line).
MACD and RSI are supporting the bullish recovery of the index, both showing higher lows: the first seems close to breaking the 0 line (positive momentum), and the RSI is very close to breaking the 50 level (bullish).
It is important to note that the main trend remains downward, and only a gradual exceeding of the 50MA (yellow line) could lead to a possible change in trend. The price action is forming a side channel between 30.300 and 31.300, which will give rise to strong price swings.
We remain positive on Dow Jones from a short to medium-term perspective.
- Support at 29.200
- Resistance 32.000