 Good morning and welcome to the week ahead video with me, David Madden. Today's date is Friday the 19th of March 2021 and the time is just coming up to 11 of 55 GMT And I'm looking ahead to next week, which is Monday the 22nd until Friday the 26th of March Now before we start discussing the big events of next week, let's take a quick recap of the major events that happened this week Earlier on this week a Wednesday. We are from the Federal Reserve Who held the dovish line? Excuse me the the US central bank raised its growth forecast for the US economy for 2021? It also cautioned about higher inflation But the set is going to be more most likely to be a transitionary increase in price increase in prices And they shouldn't be big enough or last long enough to warrant a rate hike It also seems quite clear that the Federal Reserve don't look to be Aren't going to be raising interest rates until 2024 That gave a nice boost to US stock markets. We had been a very positive record highs seen on Wednesday night Following on from that result or so a corresponding The next day we saw a move higher in yields not just the US 10 year yield Which hit 1.75% the US that's the US 10 year yield You also saw an increase in government-bound yields across the board, especially here in Europe So yesterday was a bit of a different story last night We'd a fairly sizable decline in US stocks, particularly tech stocks Tech stocks seem to be the most vulnerable to concerns over higher yields here in Europe this morning We're kind of the negative sentiment from Wall Street that happened last night that spilled over to today So we're seeing smallish smallish losses here here in Europe, but volatility is certainly tapered off in the last couple in the last couple of sessions During the week ahead in terms of some of the bigger economic events to look forward to we've had a number of important economic announcements From the UK. We have UK unemployment retail sales and CPI The employment rate is a bit skewed because of the furlough situation. We keep on that for the claimant account That's probably a better gauge of the actual jobless rate in the UK CPI is going to be important because inflation has been the kind of hot topic recently There that's been kind of the big influence on government bond yields Which in turn where they've risen this tends to ship up pressure on stocks, but also retail sales Tires are gonna be looking out for what happens in February with respect to retail sales because let's face it The January ones were absolutely awful and it's all going to be about our people going out and spending money again The other big economic events of the week We have the flash services PMI and manufacture reports from France and Germany to larger economies in the Eurozone What the recent reports have shown that this can if you know recently respectable growth levels in manufacturing Because manufacturing can largely continue to operate in the current restrictive climate Services though go to restaurants and bars and things like that has been hit hard hit hard And with that the services readings have often been quite poor. So That's going to be in focus. Keep in mind services account for about 70% of GD output in these large eurozone economies so obviously a poor service reading is kind of as a is Would obviously be bad with overall economy also in terms of economic and announcement this week We've been looking over to the US the US personal spending and retail US personal spending and income figure Think the the person spending figure is going to be the very much the main kind of driver to focus on our Americans going out spending money. These are the questions people are going to be asking Now on the corporate front, we have a number of a number of companies Kingfisher, Sydney World Smiths Group Darden restaurants over in the US Game stop GameStop and also Adobe Now what I do is I quickly run through some of the major markets some of the big Indices and currency pairs in the context of what's what's ahead next week So starting off here with the foot to 100 the foot 200 spin After having a correction between January through to through the early February It's been broadly been move a higher since we have seen the market turn over as I've ever saw slightly It's last about the ground but while we hold above this blue line here the fifth of the movie average It's likely that the kind of more recent upward trend Early February onwards is going to continue. Should that be the case? We could look at heading back up towards the mid-march highs in around 6,822 if you go beyond that we can then be looking looking looking back towards the January highs up towards 6,960 and keep in mind those highs were the highest seen since the since the kind of The pandemic and the lockdowns set in up, you know in kind of February March 2020 If you do look to kind of move back below the fifth of the moving average back below that the blue line in a 6652 we can then look heading back down towards the lows of late February in around 6464 and that isn't a million miles from the one of the moving average Well, it's it's that which comes into play at 6506 Take a look now what's going on over in Germany keep in mind earlier You know in the last only yesterday we had record highs on the German market. So The fact that we're a bit lower today isn't really the end of the world. The German market Registered an all-time I like yet another all-time I yesterday that really says a lot of us sentiment over in Germany Things are a bit more quiet today But that but that isn't really anything to be overly overly could overly Overly overly concerned about the long wick on yesterday's candle here Indicates in decision. So I'd say that that the markets going to completely turn over on itself That appears to be a doji with that it can often signify in decision not to say that the markets going to turn over on itself It just means that we could be a bit of an across roads, you know Which could be the trade sideways it might continue on in the broader upper trend or could pull back a bit But we're well above the 50 moving average in a 14,000 to 43 while we can have hold above that metric and How we continue to hold well above the 50 moving average it's like the broader upward trend is going to continue Should that be the case next best level the next big level to watch out to the upside will be 15,000 If you do even move to the downside support could be found in around here 14,400 We can see that that general area is a bit of a solidation there Not too long ago and a move below that could take us back down to this blue line the 50 moving average As you can see here active lice is the port in early March So metric has been of importance in the past and makes it more likely it'll be of importance in the future But there are no guarantees Take a look at what's going on over in Asia I Was on with the the Japanese market the Nikkei 225 Not too dissimilar to the foots you were under or by the market sold off into the market We're by the market was in a broad upward trend the recent highs Haven't you know the highs that we saw this week haven't taken up the highs Haven't taken up the highs of February, but nonetheless. We're still in at the broader upward trend notice How the the long wick and the gun on the candle here that we saw yesterday is in the two dissimilar from what we saw in the backs Well, we are firmly lower on the on the on the Japanese 225 the Nikkei 225 if we did drift lower from here We could like a finding support potentially at the fifth at the blue line the 50 to move the average in a 29,182 It's only really if you're going to go below the lows of early March in round Was near there they're about 28,300 could then we begin to think okay, maybe it's kind of broader upward trend as come Maybe it's just come to an end or we could be in for further losses and should it be the case We can look at heading back down toward this area here The lows of early February isn't too far away from the 100 a moving average in a 27,679 Now looking over what's going on with the US The S&P 500 because it's kind of relatively big tech component It took a fairly big take a fairly big It incurred fairly size of a losses in comparison with the tech light Dow Jones and obviously the Nasdaq 100 Dropped up with 3% last night. This here is a very bearish and candle on The on the S&P 500 and but the notice on today's candle is obviously early days yet But we have we have managed to kind of recoup the recoup some of the losses that that were That were set yesterday, but we're still very much Sort of very much down on the past 24 hours But that being said the market is you know the market Had an all-time high in Very very recently we're comfortably above this blue line here the 50 movie average So the broader upward trend is still very much intact If you do manage to kind of move on higher from here We could be looking at retesting the recent all-time highs and then if you go beyond that 4,000 will be the next big number traders will be looking out for if it do you manage to move lower and take out today's low Which is in around 3,908 if you go below say three thousand nine hundred Protactors data consolidation in that area recently. We could be heading back down towards the 50-day moving average Looking over on the currency front now. We got a Take a look a pound Take a look a pound versus the US dollar because we got remember next week We have UK and employment UK retail sales and US CPI sorry, and UK CPI rather So starting at its highest level and well over two and a half years back in early in late February Since then has pulled back ever so slightly But we're notice how it's still called to be above the fifth of the moving average in at one spot 38 19 That's this blue line here. Why we hold above that metric is like it at the broader upward trend is going to continue Should that be the case? We can then be like retesting the highs of the middle of mid-march in a rock Well, just just shy of one spot 40 and a movie on that could then Put the the January high or so the February high rather in at one spot 42 41 on the radar If you even if you do drop below the fifth of the moving average Keep an eye out for the one already moving average because notice how the one already moving average back in early November I could nicely support to keep on out on that metric there in at one spot 35 82 I'll also take a look speaking of the dollar also take a look because we have the US personal spending and income coming up tomorrow The very popular currency pair Euro dollar So Euro dollar and in early January hit its highest level in over two and a half years But since then it's been a fairly clear and concise downward trend So, you know, we obviously have a the lower low into February to be fair The highs of February did manage to take out the highs of January But the market moves aggressively low yet again in a multi-month loan in March And notice how it has bounced back, but hasn't really done a particularly impressive job It hasn't really gotten back above 120 yet So it seems to me that while we hold below the fifth of the moving average and also 120 It's likely that the recent downward trend is going to continue should that be the case We could then be looking at retesting the recent lows, you know one spot 18th or 18 1835 and below that back down towards the kind of one 18 zone And if you have a fairly size of break below 118, we could then be looking at it back down towards the other 116 area Now notice how remember early in the start of the video. I talked about the long wick and the doji seen What appears to be a doji on both the the the DAX and also the Nikkei 225 The the shape of that candle isn't too dissimilar from the shape that we saw here When you see a long wick like that, it denotes indecision not to say that the markets going to completely go in the opposite direction But is the possibility so notice how the That the the euro notice how the euro was making it was its way higher into early into early into late February it then pushed higher had had this formation and then what happened next as you can see with the lower low and lower high Another lower low and the the recent highs still have managed to get back above the 120 mark So that's the kind of formation is the sort of patterns you need to kind of be familiarize yourself with So what we saw about the price action on euro dollar and what's saying is no guarantees It will happen it and the German and the German market of the M of the Nikkei 225, but it is a possibility Also in terms of the corporate on the corporate front, we've got a couple of big stocks out next week GameStop as well as one of them It's been the news a lot recently Obviously it was the it's tied up with the kind of the hold of retail traders Taking on Wall Street in relation to the in relation to a number of big hedge funds had quite big positions in those companies Big short positions was either paying the price for As you can see here This the stock has had a lot of as a huge amount of volatility in the last few weeks and months We're currently the stock closed last night above $200 a share. It's still very much above It's 50 moving averages blue line here, which comes in the play at about 110 111 dollars per share The recent upward trend has been quite aggressive It's still largely in place if you continue to move on higher from here We could be looking at retesting 300 if you take out 300 we could be looking at retesting the march highs of 348 And then if you go beyond that we can then be looking at retesting the highs of January But keep my visit isn't exceptionally exceptionally volatile stock. It moves around quite a bit So if you do what it if you do trade game stock just be very aware of the swings in this have been absolutely wild And then lastly, I take a quick look at a city world a company which has been pretty much down on its luck in relation to the Lockdowns But that being said the perception is that the UK economy and the view is the UK economy is going to reopen Slowly but surely in the weeks and months ahead and someone like someone likes a city world Who managed you can survive this long to the pen to through the lockdowns They should be you should see a decent increase in demand whatever things in some shape or form go back to Normal stock has been driving higher the last few months In fact yesterday in its highest level Since since March last year so we're talking about a one-year high if you continue to press on higher from here because we're currently around 123 we could be looking at heading up back up towards the 160 mark any move to the downside Could find support from the from the hundred P mark here one pound a share and then blow that back down toward the fifth Moving average this blue line here markets on a few occasions just north of it Activeness support before to keep an eye for the fifth and moving average in it just north of 86 pence That's all from this video. Have a good training week. Have a good weekend and have a good training week. Thank you