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Weekly market brief: 2 - 6 May 2022


Financial index

Current price

Forecast

S1

R1

S2

R2

​FTSE100

7,545

Consolidation

7,520

7,675

7,405

7,775

FTSEMIB

24,252

Consolidation

24,000

25,000

22,900

25,885

DAX 40

14,098

Consolidation

14,050

14,815

13,600

15,500

S&P 500

4,132

Cons./ Bullish

4,132

4,385

3,980

4,535

NASDAQ 100

12,855

Cons./ Bullish

12,795

13,855

12,215

14,405

DOW JONES

32,977

Cons./ Bullish

32,700

35,515

32,000

37,000

S: Support R: Resistance

FTSE 100 (#UKX)

The FTSE 100 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.


Indicators

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: 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 7.520

Resistance at 7.675


FTSEMIB (FTSEMIB)

The FTSEMIB had a week up by + 1.57%

For the week ahead we could see a consolidation around 24.000


Indicators

The FTSEMIB has remained since mid- Aprile in the wide range between 24.000 and 25.000.


In the coming week we could expect a consolidation at the bottom of this channel 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: the former seems close to cross to the upside and a breakout of 0 (positive momentum) and 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


DAX (#DAX)

The DAX ended the week up by +1.63%

For the week ahead, we are in favour of a consolidation between 14.000 -14.400


Indicators

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 these thesis by being the first very close to crossing the 0 line upwards (positive momentum) and the latter 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


S&P500 (#SPX)

The S&P 500 had a week down by -2.36%

For the week ahead, we are in favour of a recovery to at least 4.300


Indicators

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 favour 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


NASDAQ 100 (#NDX)

The NASDAQ ended the week down -3.25%

For the week ahead we are in favour of a consolidation at 13.000 to then reversing to the upside


Indicators

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 favour of possible price recovery followed by a trend reversals.

The price action on the trendline combined with the extension of internal indicators make us remain positive on the Nasdaq 100.


Support at 12.795

Resistance at 13.855


DOW JONES (#DJI)

DOW JONES had a week down by -1.65%

For the week ahead, we expect a recovery at least to 34.000


Indicators

Friday's selling pressure we believe may extend slightly into week 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

OTB Global Investments

1 May 2022

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