Technical Update - DAX, STOXX50, CAC40, AEX & OMX C25
Kim Cramer Larsson
Technical Analyst, Saxo Bank
Summary: Key support levels being tested this morning on European Stock markets. Close below supports down trends are confirmed.
DAX index opened this morning below key support at 13,989. A close below will confirm down trend has resumed and 13,200 support is likely to be tested in a few days. However, more down side should be expected as this could be the fifth wave down.
RSI showing negative sentiment and a daily close below 40 threshold will underline that scenario.
For DAX to reverse this likely down trend scenario a close above 14,600 is needed
EUROSTOXX50 has broken below key support at 3,792. A daily close below down trend has resumed. A close below 40 on RSI will confirm that scenario. A down trend that is likely to test March lows. A close above 3,955 is needed for this likely bear scenario to be reversed
CAC40 opened with a gap testing key support at 6,424. A close below will confirm down trend has resumed. Price levels around March lows will be in sight. A close above 6,758 is needed to reverse that scenario.
AEX trading below key support at 705. A daily close below down trend has resumed. March lows around 652 is likely to be tested. If RSI closes below 40 threshold the bearish scenario is confirmed further. A daily close above 733 is needed to reverse the likely down trend.
Range bound OMX C25 is testing lower support at 1,721. A daily close below down trend is confirmed and February lows are likely to be tested.
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