Technical Update - DAX, EuroStoxx50, CAC40, AEX and BEL20
Kim Cramer Larsson
Technical Analyst, Saxo Bank
DAX broke short term resistance at 12,227 Friday currently trading around the 0.7645 Fibonacci retracement at 14,560 and the 100 SMA. Bollinger bands are expanding and RSI is currently above 60 threshold which indicate bullish sentiment. IF RSI closes above 60 today more upside in DAX is to be expected. If that scenario unfolds Major key resistance at 14,925 is not unlikely to be tested.
IF RSI on the other hand fails to close above 60 sellers could return.
EuroStoxx50 closed above resistance at 3,752 Friday establishing new short term uptrend. Resistance at around 3,907 is likely to be tested. RSI testing 60 threshold and needs to close above for confirmation of upside potential.
CAC40 with close above 6,456 uptrend is confirmed. RSI still below 60, however but testing the threshold. A move to the strong resistance area at around 6,750-6,836 is not unlikely. However, if CAC40 slips back below 55 SMA and RSI does not close above 60 selling pressure could resume
AEX Amsterdam Index will confirm short term uptrend if it closes above 707 with potential to resistance at 719 and 714. RSI testing 60 threshold and needs to close above for confirmation of upside potential.
Contrary to other Indices BEL20 is struggling to get upside momentum. A close above 4,032 is needed but there will be strong resistance at around 4,127. RSI is below 50 still indicating negative sentiment.
Quarterly Outlook Q2 2022
Quarterly Outlook Q2 2022: The End Game has arrived
- Shocks from covid and the war in Ukraine have forced the global financial and political world to change, but what will the end game be?
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.