Two weeks have already passed since the beginning of the new year and the technical situation begins to take shape. Let’s start from where we left off at Christmas 2018. In the previous report we wrote that […] “in the short term, following the sharp decline of the US market on Christmas Eve (remember that the US will also be opened on December 26) two are the hypotheses that can be done:
The S & P500’s descent will find support in the 2300 area, feeding a rebound towards the 2400 points resistance. After the bearish run-up and the short oversold fort, the return to the channel drawn in pink (pull back) is a scenario that has a good chance of being realized.
The fall of the S & P500, thanks to the panic selling of the Asian markets on Christmas day, could reach and fall below 2300 points. In this case the corrective wave that will follow will be greater than in case 1: good opportunity for those who are liquid “.
The first hypothesis was the one with the greatest probability of occurring and so it went. We have witnessed three weeks of recovery but now we have reached 2600 for the S% P500, crossing of static and dynamic resistances and for the Nasdaq close to the upper part of the downtrend channel. A retracement would not amaze, especially in a context of rising rates that Powell does not seem to want to revise.
after the collapse , but now the risk of a fall should return to be felt.
NASDAQ: the bulk of the recovery should have been done, the profit taking of the bullish should start slowing down.
On the other hand, the state of health of the European economy is not good. Even during the ascent of official economic indicators our readers will remember that we have always maintained a healthy skepticism. The technical situation of the Dax is even more delicate than that of the Ftsemib. As long as we do not carry over to 11,000 points the downward trend will remain very solid.
DAX30: 11,000 points remains the most immediate and critical resistance level. The bullish inversion point is still very distant. The recoveries for now are to be seen as a short opportunity.
In these pages you can see the charts of the main financial markets with highlights:
– the main supports and static resistances on a weekly chart;
– the positioning of the 40-period moving average;
– the positioning of the Ematrend indicator devised by me (in light green) on the basis of which the background of the chart changes (red for the downtrend, dark green for the bullish one), inclusive of the inversion level;
– the 12-month linear regression channel.
EURUSD: we are in contact with the high part of the congestion that we carry around for about 15 weeks, Attention to the first resistance at 1.1583
Immediately below the automatic analysis produced and printed by an algorithm on all the Ftsemib titles.
The detailed analysis of each asset is the subject of a weekly call with institutional clients.
Institutional customer? To receive the complete file in PDF write to info@enricomalverti.com or info@fintech4i.com