Technical Update - CAC40, AEX, SMI and OMXC25
Kim Cramer Larsson
Technical Analyst, Saxo Bank
CAC40 bounced off of the support at around 6,421 yesterday. Bounce continues today. What to look out for is the candle body gap to be closed i.e. a daily close above 6,634. If that occurs we could see further rebound. If rejected selling pressure is likely coming back.
AEX Amsterdam 25 Index dropped below the support at 714 to find strong support at 700. The 714 levels seems to be pivotal for Bulls/Bears. A close above could give further upside possibly to around 735. A close below the 700 support will come under pressure. If we see a daily close below 700 there is great risk down to around 600.
The leading Swiss Index SMI found has bounced off of the 11,491 support. If closing the day above 11,878 we could se further upside towards 12,145 resistance. A close below and the 11,491 support will be challenged once again.
OMXC25Cap seems to be trading in a falling channel. Tested the upper level in the strong support area around 1,563-1,533 and has performed a strong bounce. A bounce that if closing on the daily above the upper falling trend line could extend to test 1,800 resistance.
If instead it closes the body gap from this morning i.e. a daily close below 1,657 the 1,563-1,533 support area is likely to come under renewed selling pressure.