Multiplecharts1person_1024x768M

Technical Update - DAX, AEX25, BEL20, CAC40, FTSE100 & FTSE250

Equities 4 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Summary:  DAX, AEX and CAC40 seems to be heavy testing key supports. BEL20 still holding up. FTSE 100 could seems strong and could test all-time highs. FTSE 250 in falling channel but indicators point to bullish break out. But will it?


DAX got rejected at the previous support at 14,149 last week (now a resistance level) and seems set for lower levels. Strong support at around 13,564 is likely to be tested withing the next week or so.
However, RSI hasn’t yet broken below 40 threshold i.e., still showing positive sentiment. If DAX manages to close above 14,160 we would be likely to see a move towards 14,500 possibly also December highs.
Look out for a move below last weeks lows 13,791. If that occurs RSI is likely to break below 40 supporting the bearish trend.

 

DAX d 28dec
All charts and data : Saxo Group

AEX25 is in a bearish trend after closing below 715 last week. Bouncing from around the 0.382 selling seems to be picking up. RSI still above 40 however, but a close below is likely to fuel further selling. A close below 690 on AEX will confirm the bearish outlook with no strong support until around 661-654.
For AEX to reverse the bearish picture a close above 715 is needed.

 

AEX25 d 26dec

BEL20 seems indecisive. The index broke support at 3,670 only to jump back above but has so far failed to resume uptrend by breaking above 3,777 which is needed for further upside.
If BEL20 closes back below support at 3,670 followed by new low below 3,631 BEL20 is likely to experience a sell off down to 3,569 possibly 3,497.
RSI indicator is still showing positive sentiment but there is divergence indicating the uptrend has weakened.

BEL20 d 28dec

CAC40 bounced from 55 daily SMA last week but is in a bear trend supported by negative RSI. RSI closed below 40 16th December. The support at around 6,363 could prove not be that strong if tested. If that scenario plays out a sell off down to around 6,200 should be expected. For CAC40 to reverse to uptrend a close above 6,615 is needed.

CAC40 d 28dec

FTSE 100 bounced strongly from 7,300 after breaking support at 7,423. FTSE seems likely to resume uptrend. RSI is not showing divergence and if RSI closes back above 40 it could be a good indicator FTSE 100 will test previous highs at around 7,600 potentially take it out for at move to all-time highs at 7,687.
However, a possible scenario is that FTSE 100 could be caught in a range between 7,300 and 7,578. Break out is needed for direction.

FTSE100 d 28dec

FTSE 250 is in a downtrend and seems for trade in a falling channel pattern. Support at 18,493 seems to hold for now. If FTSE250 breaks above its show term falling trendline a move to November highs at around 19,615 could be seen.
No divergence on RS and still showing positive sentiment indicates we could see a bullish breakout of the falling channel.
However, a close below 18,422 is likely to push the Index to next support at around 17,822.

FTSE250 d 28dec

RSI divergence explained: When  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

 

Quarterly Outlook

01 /

  • Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges

    Quarterly Outlook

    Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges

    Althea Spinozzi

    Head of Fixed Income Strategy

  • Equity Outlook: Will lower rates lift all boats in equities?

    Quarterly Outlook

    Equity Outlook: Will lower rates lift all boats in equities?

    Peter Garnry

    Chief Investment Strategist

    After a period of historically high equity index concentration driven by the 'Magnificent Seven' sto...
  • FX Outlook: USD in limbo amid political and policy jitters

    Quarterly Outlook

    FX Outlook: USD in limbo amid political and policy jitters

    Charu Chanana

    Chief Investment Strategist

    As we enter the final quarter of 2024, currency markets are set for heightened turbulence due to US ...
  • Macro Outlook: The US rate cut cycle has begun

    Quarterly Outlook

    Macro Outlook: The US rate cut cycle has begun

    Peter Garnry

    Chief Investment Strategist

    The Fed started the US rate cut cycle in Q3 and in this macro outlook we will explore how the rate c...
  • Commodity Outlook: Gold and silver continue to shine bright

    Quarterly Outlook

    Commodity Outlook: Gold and silver continue to shine bright

    Ole Hansen

    Head of Commodity Strategy

  • FX: Risk-on currencies to surge against havens

    Quarterly Outlook

    FX: Risk-on currencies to surge against havens

    Charu Chanana

    Chief Investment Strategist

    Explore the outlook for USD, AUD, NZD, and EM carry trades as risk-on currencies are set to outperfo...
  • Equities: Are we blowing bubbles again

    Quarterly Outlook

    Equities: Are we blowing bubbles again

    Peter Garnry

    Chief Investment Strategist

    Explore key trends and opportunities in European equities and electrification theme as market dynami...
  • Macro: Sandcastle economics

    Quarterly Outlook

    Macro: Sandcastle economics

    Peter Garnry

    Chief Investment Strategist

    Explore the "two-lane economy," European equities, energy commodities, and the impact of US fiscal p...
  • Bonds: What to do until inflation stabilises

    Quarterly Outlook

    Bonds: What to do until inflation stabilises

    Althea Spinozzi

    Head of Fixed Income Strategy

    Discover strategies for managing bonds as US and European yields remain rangebound due to uncertain ...
  • Commodities: Energy and grains in focus as metals pause

    Quarterly Outlook

    Commodities: Energy and grains in focus as metals pause

    Ole Hansen

    Head of Commodity Strategy

    Energy and grains to shine as metals pause. Discover key trends and market drivers for commodities i...

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)

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.