Credit Impulse Update: France’s best days are already behind us Credit Impulse Update: France’s best days are already behind us Credit Impulse Update: France’s best days are already behind us

Technical Update - BEL 20 in free fall. AEX25 hovering around key support. CAC40 opening October below its key support

Equities 3 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

AEX25 is dancing around the key support at 632. A close below could fuel a sell-off down to 600 support. RSI is showing minor divergence indicating a minor bounce could be seen. However, there is no divergence on weekly RSI which is below 40 indicating lower levels on AEX index going in to October is likely. To demolish this bearish picture AEX needs to close above 704

AEX d 3oct
Source: Saxo Group
AEX w 3oct
Source: Saxo Group

BEL20 has reached 2.0 projection of the early September correction. There is no divergence on RSI indicating lower levels are likely.
B
EL20 is approaching the strong support at 3,235 and the 0.618 retracement at 3,173. However, with no divergence on weekly RSI  BEL20 could drop to the lower end of the consolidation area at around 3K. To reverse this bearish picture BEL20 needs to close above 3,740.

BEL20 d 3oct
Source: Saxo Group
BEL20 w 3oct
Source: Saxo Group
CAC40 has opened the first week of October below key support at 5,755. If CAC40 doesn’t close the week back above that level, it is likely to test the support at around 5,392. If that scenario plays out the leading French Index is likely to drop even further to the 0.618 retracement and strong support at 5,065-5,000 i.e., middle of the consolidation area from 2020.

CAC40 w 3oct
Source: Saxo Group

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
Full disclaimer (https://www.home.saxo/legal/disclaimer/saxo-disclaimer)
Full disclaimer (https://www.home.saxo/legal/saxoselect-disclaimer/disclaimer)

Saxo Bank A/S (Headquarters)
Philip Heymans Alle 15
2900
Hellerup
Denmark

Contact Saxo

Select region

International
International

Trade responsibly
All trading carries risk. Read more. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

This website can be accessed worldwide however the information on the website is related to Saxo Bank A/S and is not specific to any entity of Saxo Bank Group. All clients will directly engage with Saxo Bank A/S and all client agreements will be entered into with Saxo Bank A/S and thus governed by Danish Law.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.