Weekly market brief: A positive week for the FTSE100 index
|FTSE 100 (UKX)
The FTSE100 index had a week up by +0.95%.
For the week ahead we are in favour of a possible recovery till 7,500.
Indicators
Positive week for the British index that seems to hold above current support level and 200MA. The 7,300 is an important support area that could lead to short term bounces.
MACD e RSI are very extended to the downside with the second one in oversold condition.
The risk/reward has now shifted towards more interesting levels and we start to consider long positions (assuming 7,100 as ultimate support): we are also starting to consider a possible bottoming scenario between 7,200 and 7,400 to then proceed higher in the short to medium time frame.
We are neutral on the FTSE 100 with a bias towards upside potential.
Support at 7,300.
Resistance at 7,700.
FTSEMIB (FTSEMIB)
The FTSEMIB index had a week up by +1.56%.
We are in favour of a possible consolidation within the 26,000 area.
Indicators
Positive week for the Italian index that is now retracing on a strong support level that precisely opened the way to the January bullish rally.
From a price action standpoint, it is difficult to understand if the 100MA will hold or will just act as first step towards a more deeper sell-off.
MACD e RSI are quite extended to the downside with the second one approaching oversold condition. In addition, the RSI is so far respecting the downward trendline.
We are neutral on the FTSEMIB because if the support at 25,000 won’t hold the index, a rapid fall till 23,500 is still on the table.
Support at 24,800.
Resistance at 27,900.
DAX 40 (DAX)
The DAX index had a week up by +1.28%.
We are in favour of a possible consolidation in the 15,000 area.
Indicators
Positive week for the German index that is now consolidating on the 100MA.
A strong area of volume concentration is at 14,600: level that acted as residence throughout 2022.
MACD and RSI turned to the downside with the second one approaching oversold conditions.
We remain bearish on the DAX, an ideal retracement should reach at least 14,250. Therefore until the price doesn’t consolidate, we rather be on the caution side.
Support at 13,800.
Resistance at 15,800.
S&P 500 (SPX)
The S&P500 index had a week up by +1.39%.
We are in favour of a possible upside till 4,100.
Indicators
Positive week for the US index that managed to reverse to the upside on the 3,800 area as happened in December 2022.
At this precise moment is too early to say if the SPX will reverse upward but it is important to prepare ourselves for future bounces.
MACD e RSI are recovering and seem to support the index on a upward move.
The current consolidation just below the 50MA is very positive and good lead to upward moves during the coming week with 4,100 as short term target.
After a bearish phase, we are back to neutral on the S&P 500 with a bias towards the upside.
Support at 3,750.
Resistance at 4,200.
Nasdaq 100 (NDX)
The NASDAQ 100 index had a week up by 1.97%.
For the week ahead we are in favour of a possible consolidation on the 12,500 - 12,700 area.
Indicators
Positive week for the Tech index that it is now consolidation on the strong resistance area.
The bounce on the 50MA can be a very positive sign on a medium term horizon, at the same we would like to see the price consolidating between 12,500 and 12,700 before proceeding upward
MACD e RSI are positive and in negative divergence with the levels of January-February 2023: it is specifically this aspect that keeps us caution on the index.
We are neutral on the NASDAQ as we would like to see the price to consolidate before proceeding upwards. A sideway price action could allow internal indicators to exit the current divergence and being more supportive for upwards move.
Support at 11,000.
Resistance at 12,700.
Dow Jones (DJI)
DOW JONES index had a week up by +1.18%.
We are in favour of a possible recovery till 33,000 area.
Indicators
Positive week for the industrial index as it is now floating on the upper side of the bearish trendline broken in November 2022.
There are high chances that the current price action is back-testing the previous breakout point, however we will need to wait for the price to confirm such event.
MACD is about to cross to the upside and the RSI has now left oversold territory and could break above the 50 level.
We are neutral on the DOW JONES with a bias towards upward potential: the tight trading range between 31,600 and 32,300 will soon be broken, in our opinion to the upside.
Support at 31,200.
Resistance at 34,500.
TADAWUL (TASI)
TADAWUL index had a week up by +4.71%.
We are in favour of a possible upward move till 10,800.
Indicators
Positive week that saw the price perfectly bouncing from the support at 10,000.
MACD is about to go back to positive territory and the RSI has overcome the 50 mark.
In the short term we see 10,500 and 10,750 as two possible targets. On a more technical level, the recent slow down of the 50MA that has started to flattening in recent weeks could pave the way for a price recovery.
A close above the 50MA could then lead to a stronger upward move.
We are bullish on the TADAWUL.
Support at 10,000.
Resistance at 11,200.
FTSE ADX Growth Market Index (FADGI)
FTSE ADX index had a week down by -1.53%.
For the week ahead we could see a regain of the 9,900 mark.
Indicators
Negative week that sees the price keep moving below the bearish trendline in place since November 2022
Before considering a possible long positions, we believe the price should recover ground at least above the 10,000 level.
MACD and RSI are now very extended to the downside with the latter recovering slightly.
We are bullish on the FADGI but prefer to wait for an initial phase of consolidation which seems to be ongoing.
Support at 9,680.
Resistance at 10,300.
Dubai Financial Market General Index (DFMGI)
DFM index had a week up by +0.01%.
For the week ahead we could see a consolidation on the 3,400 level.
Indicators
Consolidation week that saw the price moving just below the 50MA.
MACD and RSI are recovering with the second one exiting the oversold condition.
We remain neutral on the DFMGI with a bias toward upside potential till 3,400 area that could then open the doors to a bullish medium term scenario.
Support at 3,270.
Resistance at 3,500.
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