FTSE 100 (UKX)
The FTSE FT100 TR ended the week up by + 2.74%. For the week ahead, we could see a bullish continuation to at least 7.300.
Indicators
The bottoming in the area of 7.000 has led the index to finally put in place a recovery. Seeing the strong push, a possible retracement on 7.120 could then bring the UKX to resume its move upside with the first target at the resistance level at 7.300.
Once broken, we believe that the second short-medium term target can be represented by the 50MA (yellow line) at 7.400.
MACD and RSI seem to support a recovery in strength of the index with the former recovering and the latter exiting the oversold area. It should be noted that despite the positive performance, MACD is still below 0 (negative momentum) and the RSI below 50 (bearish)
We are positive on the FTSE100 in the short to medium term.
Support at 6.960
Resistance at 7.300
FT Lux Index
The FTSE MIB Net Lux Index had a week up by + 1.52%. For the week we could see a gradual recovery to the upside to at least 23.000.
Indicators
We believe the consolidation on the strong support level at 21.500 is a very positive signal for a short-medium term push to the upside. The close above the 9MA (red line) could in fact lead the index to a substantial rise.
The first target to be reached is undoubtedly the bearish trendline at 22.500. Once broken the index could stretch at least up to the 50MA (yellow line) to 23.650.
MACD and RSI suggest an upside scenario as the former is now close to a crossover of its moving averages and the latter is showing a positive divergence with the price action.
We remain positive on the FTSEMIB and believe that this consolidation phase could lead to short to medium term gains.
Support at 21.500
Resistance at 23.650
DAX 40
The DAX ended the week down by -0.06%. This week, we could see a bullish recovery to at least 13.600.
Indicators
We see the consolidation around the strong support at 13,000 as a positive signal for the short to medium term. The first barrier to overcome is the 9MA (red line), which could already happen at the beginning of the week.
Once broken, we believe that a reasonable target could be represented by the "gap down" formed on June 10 at 13.600. MACD and RSI seem to support a bullish recovery of the index with the former close to an upward crossing and the latter in positive divergence with the price (lower lows in the price and higher highs in the RSI).
We remain positive on the DAX40 and believe that this consolidation phase could give rise to a bullish price action.
Support at 13.000
Resistance at 14.050
S&P 500
The S&P 500 had a week up by +6.45%. For the week ahead, we are in favor of a bullish continuation to at least 4.100.
Indicators
The positive week for the US index, which was also supported by an increase in volumes, we believe may be a positive sign for the short to medium term.
The "trading range" between 3.850 and 4.100 could allow the SPX to consolidate to then eventually be able to break to the upside the 50MA (yellow line), which has played the role of dynamic resistance since January 2022.
MACD and RSI are supporting the bullish push with the former near a bullish crossover and the latter very close to breaking the 50 (bullish) line. After a possible consolidation at the beginning of the week, we believe that the SPX could continue to rise afterwards.
We remain positive on the S&P 500 in the short to medium term.
Support at 3.850
Resistance at 4.100
NASDAQ 100
The NASDAQ 100 ended the week up by +7.45%. For the week ahead we are in favor of a bullish continuation to at least 12.800.
Indicators
We believe the positive week of the Tech index may have marked the bottom at least for the short-medium term; the rebound occurred on the upper part of the bearish trendline we believe is a further positive sign.
Given the strong rises of the last few days, the index could consolidate slightly to then proceed upwards: specifically, a retracement of 11.600 could be a good intermediate support area.
MACD and RSI are supporting the recovery in strength with the former crossing to the upside and also signaling a positive divergence with the price. The RSI has instead reached the threshold of 50 (bullish) which in the past played the role of resistance. After a slight consolidation we believe that this level can in fact be broken to the upside.
Despite an encouraging setup, it is important to point out that the trend is still downward, only a gradual break above the 50MA (yellow line) could lead to a trend change.
We remain positive on the NASDAQ100 for the short to medium term.
Support at 10.700
Resistance at 12.400
Dow Jones
The Dow Jones Industrial Average had a week up by + 5.39%. For the week ahead, we are in favor of a bullish continuation to the 33.000 area.
Indicators
A bullish week, supported by increasing volumes, we believe to be a positive short-medium term signal.
A price action above the 9MA (red line) could give rise to subsequent rises at least up to the 50MA (yellow line) which has been playing the role of dynamic resistance since January 2022.
MACD and RSI are supporting the bullish push of the index with the former close to a bullish crossover of its moving averages and the latter near the 50 line (bullish).
Given the strong rises at the end of the week, we believe the index may slightly lateralize to then continue upwards. It is important to note that the main trend remains downward and only a gradual move above the 50MA (yellow line) could lead to a possible change in trend.
We remain positive on Dow Jones from a short-medium term perspective.
Support at 29.200
Resistance 32.000