Technical Update - Rebound time in DAX and Euro Stoxx, but how far?
Kim Cramer Larsson
Technical Analyst, Saxo Bank
DAX is finding support at the 0.764 retracement at around 13.022. A bounce over the next couple of days to around 14.057 is not unlikely. However, resistance at 13,655 which is the 0.382 retracement of the past 8 days of sell off and where market gapped the last.
There is no divergence on the RSI indicating lower levels after a correction is likely.
Weekly the gap last week is key. As long as buyers cannot close it bear picture is in play. However, RSI is showing divergence indicating selling pressure is easing.
A daily close below 13,000 bear trend will likely resume and fuel a selling pressure down to 11,556.
EuroStoxx50 seems to bounce before reaching March lows. If the Index moves above 3,550, we could see the rebound extend to around 3,690. If the Index is taking out the low from last week at 3,420 expect the March lows to be penetrated.
Latest Market Insights
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.