Technical Update - AEX25 , BEL20 and CAC40

BEL20 is close to be testing key strong resistance at around 3,875. If BEL 20 fails to close above a correction could be seen. RSI also needs to close above December peak i.e., above the horizontal line to gain further momentum.
If BEL20 closes above 3,875 and RSI closes above the line 4K could be tested in January.
If BEL2 is being hit by selling pushing the index below the 200 daily SMA the Index could be stuck in range between 3,600 and 3,800. With the 200 daily SMA declining and the 55 SMA and 21 SMA rising there seems to be at tug of war between the longer-term and the medium-/short-term sentiment.

CAC40 closed Friday above key resistance at 6,829. Despite still diverge4nce on RSI there is likely more upside to 7K which is around the 1.382 Fibonacci projection of the December correction.
An RSI close above its upper falling trendline will confirm this scenario.
For this bullish scenario to be reversed a close below 6,388 is needed. First indication of this to play out would be a close below 6,641

RSI divergence: When instrument price is making a new high/low but RSI values are not making new high/low at the same time. That is a sign of imbalance in the market and an weakening of the uptrend/downtrend. Divergence or imbalance in the market can go on for quite some time but not forever. It is an indication of an exhaustion of the trend