Technical Analyst, Saxo Bank
Summary: European leading stock Indices are in bearish trend but bounced from strong supports. Could be range bound next 5 trading days between strong support and resitance levels
DAX/GER40, AEX25/NETH25, BEL20/BELG20 and CAC40/FRA40
DAX is trading in a falling channel like pattern with strong support at around 15,482. The rising 200 Moving Average adds to the support.
RSI is showing negative sentiment indicating a new attempt at breaking the support could be seen.
DAX is also currently trading below declining 55 and 100 Moving Averages adding to the downtrend picture.
A close below 15,482 could see DAX being pushed down to around the 15K support area.
To demolish and reverse the bearish picture a close above 16,060 is needed.
However, do expect DAX to be range bound between 15,482 and 16,000 the next 5-8 trading days
GER40 cfd in a falling channel but expect range bound between 15,480 and 16K next 5 trading days or so. Needs to close above 16,062 to reverse down-trend.
AEX25 strong support at 731 has now been tested twice and seems to hold. At least for now. Short-term AEX could be range bound between 731 and 748.
A close above 750 could give a short sweet rally to strong resistance at around 763 until selling pressure is likely to resume
A close below 731 a push down to around 715 should be expected.
NETH25 cfd range bound between strong support at 731 and strong resistance at 748.
BEL20 is holding on above key support at around 3,551. BEL20 is moving below all Moving Averages and RSI is in negative sentiment while the Index is trying to get back above the Cloud (Shaded area).
Bottom line there is a lot of overhead resistance that needs to be taken out for BEL20 to resume uptrend. A close below 3,551 is likely to fuel a new sell-off down to June lows around 3,464, possibly lower towards 3,400 BELG20 cfd
CAC40 is trading in a falling channel like pattern with strong support at around 7,083. CAC is below all Moving Averages and needs to close above upper falling trendline and above 7,345 to reverse to uptrend.
If that scenario plays out a move 7,525-7,580 could be seen
If CAC40 is closing below 7,083 expect further sell-off down to around 6,885-6,800
FRA40 cfd falling channel Needs to close above 7,345 to reverse down trend. Strong support at around 7,081
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