Technical Update - DAX, STOXX50, CAC40, AEX & OMX C25
Kim Cramer Larsson
Technical Analyst, Saxo Bank
Summary: Key support levels being tested this morning on European Stock markets. Close below supports down trends are confirmed.
DAX index opened this morning below key support at 13,989. A close below will confirm down trend has resumed and 13,200 support is likely to be tested in a few days. However, more down side should be expected as this could be the fifth wave down.
RSI showing negative sentiment and a daily close below 40 threshold will underline that scenario.
For DAX to reverse this likely down trend scenario a close above 14,600 is needed
EUROSTOXX50 has broken below key support at 3,792. A daily close below down trend has resumed. A close below 40 on RSI will confirm that scenario. A down trend that is likely to test March lows. A close above 3,955 is needed for this likely bear scenario to be reversed
CAC40 opened with a gap testing key support at 6,424. A close below will confirm down trend has resumed. Price levels around March lows will be in sight. A close above 6,758 is needed to reverse that scenario.
AEX trading below key support at 705. A daily close below down trend has resumed. March lows around 652 is likely to be tested. If RSI closes below 40 threshold the bearish scenario is confirmed further. A daily close above 733 is needed to reverse the likely down trend.
Range bound OMX C25 is testing lower support at 1,721. A daily close below down trend is confirmed and February lows are likely to be tested.
Quarterly Outlook Q2 2022
Quarterly Outlook Q2 2022: The End Game has arrived
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Productivity and innovation have never been more importantAs the world economy hits physical limits and central banks tighten their belts, could equities be facing a 10-15% downside?
The great EUR recovery and the difficulty of trading itIf the terrible fog of war hopefully lifts soon, the conditions are promising for the euro to reprice significantly higher.
Tight commodity markets – turbocharged by war and sanctionsWith supply already tight, commodities keep powering on. But will it last for yet another quarter?
Between a rock and a hard placeGeopolitical concerns will add upward price pressures and fears of slower growth, while volatility will remain elevated.
The Great ErosionInflation is everywhere and central banks try to combat it. But will they get it under control in time?
Australian investing: Six considerations amid triple Rs: rising rates, record inflation and likely recessionWhile global financial markets are struggling in an uncertain world, the commodity-heavy Australian ASX index is poised to keep a positive momentum.
Cybersecurity – the rush to catch up with realityWith the invasion of Ukraine, governments and private companies are rushing to reinforce their cyber defenses.