Technical Update - AEX25, CAC40 & BEL20
Kim Cramer Larsson
Technical Analyst, Saxo Bank
AEX Amsterdam closed below March lows last week, now trying to get back above. If it succeeds further upside to around 666 possibly higher trying to close the Body gap. However, the trend is down, RSI showing bearish sentiment with no divergence indicating AEX will not succeed in closing the gap.
Medium term trend is down confirmed by last week’s close below 653. Despite the divergence on RSI AEX could test both the 200 weekly SMA and the strong support at around 603
CAC40 is bouncing after massive sell off. Strong resistance at 6,086. If CAC closes above that level further upside to around 3,225 could be expected
Medium term trend is down despite the current short term rebound. If CAC takes out this week’s low at 5,855 the key strong support at around 5,755 is very likely to be tested. 200 weekly SMA add to the support strength. Look out for a bearish break of RSI trend line.
BEL20 is testing resistance at 3,759. A close above is likely to extend the rebound to test the falling trend line and possibly move to the 0.382 retracement level at around 3,888.
If the Index fails to close above 3,759 selling pressure could resume pushing the Index to test last weeks low at 3,638.
If last weeks low is taken out March lows at around 3,562 is next key support.
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.