Technical Update - Top and reversal patterns in EU Indices: DAX, AEX25, BEL20 & CAC40

Technical Update - Top and reversal patterns in EU Indices: DAX, AEX25, BEL20 & CAC40

Equities 3 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Summary:  DAX forming top and reversal. AEX taking out key support. BEL20 and CAC40 look heavy but still above supports.
Index and Index tracker cfd's levels. DAX/GER40, AEX25/NETH25, BEL20/BELG20 & CAC40/FRA40


DAX formed a Bearish Engulfing pattern yesterday taking out the past two days of trading. There has been a warning sign of a weakening of the uptrend with RSI divergence.
If DAX drops below 15,700 further selling down to the support at around 15,482 where 55 daily Moving Average will add to the support.
A close below 15,482 could lead the way for a sell- off down to 0.618 retracement at around 15,051. For DAX to resume uptrend a close above 16,012 is needed. If that scenario plays out DAX could test all-time highs at around 16,290

 

Source all charts and data: Saxo Group

GER40 cfd . Support at around 15,500. 55 daily Moving Average will provide some support.
A close below 15,500 could lead to sell off down to around 15,050.

AEX 25 formed as Bearish Engulfing candle yesterday and closed below key support at 747 to close on the top of the Ichimoku cloud. RSI is still above 40 threshold giving a bit of hope to Bulls for a rebound
However, if AEX closes below Tuesday lows RSI is quite likely to close below 40  meaning it will be in negative sentiment supporting lower AEX levels.

Support at the 0.618 retracement at around 733.
For AEX to resume uptrend a close above 760 is needed. If that plays out AEX could climb higher towards 770-780.

NETH25 cfd levels and supports

BEL 20 Bearish Engulfing yesterday indicates lower levels are likely. BEL 20 is below its 21,55  and 100 Moving Averages suggesting further downside.

Support at 3,733. A close below could see further selling pressure down to around 3,653.
To demolish and reverse this bearish picture a close above 3,815 is needed for at move to resistance at around 3,894

BELG20 cfd levels and supports

CAC 40 correction ongoing. RSI still positive and no divergence meaning the Index could move higher but for this to unfold a close above 7,506 is needed. If CAC40 closes below 7,300 it could experience a sell-off down to the 0.618 retracement at around 7,096.
55 daily Moving Average adds to the support at 7,300.

FRA40 cfd levels and supports

Quarterly Outlook

01 /

  • Upending the global order at blinding speed

    Quarterly Outlook

    Upending the global order at blinding speed

    John J. Hardy

    Global Head of Macro Strategy

    We are witnessing a once-in-a-lifetime shredding of the global order. As the new order takes shape, ...
  • Equity outlook: The high cost of global fragmentation for US portfolios

    Quarterly Outlook

    Equity outlook: The high cost of global fragmentation for US portfolios

    Charu Chanana

    Chief Investment Strategist

  • Asset allocation outlook: From Magnificent 7 to Magnificent 2,645—diversification matters, now more than ever

    Quarterly Outlook

    Asset allocation outlook: From Magnificent 7 to Magnificent 2,645—diversification matters, now more than ever

    Jacob Falkencrone

    Global Head of Investment Strategy

  • Commodity Outlook: Commodities rally despite global uncertainty

    Quarterly Outlook

    Commodity Outlook: Commodities rally despite global uncertainty

    Ole Hansen

    Head of Commodity Strategy

  • Macro outlook: Trump 2.0: Can the US have its cake and eat it, too?

    Quarterly Outlook

    Macro outlook: Trump 2.0: Can the US have its cake and eat it, too?

    John J. Hardy

    Global Head of Macro Strategy

  • Equity Outlook: The ride just got rougher

    Quarterly Outlook

    Equity Outlook: The ride just got rougher

    Charu Chanana

    Chief Investment Strategist

  • China Outlook: The choice between retaliation or de-escalation

    Quarterly Outlook

    China Outlook: The choice between retaliation or de-escalation

    Charu Chanana

    Chief Investment Strategist

  • Commodity Outlook: A bumpy road ahead calls for diversification

    Quarterly Outlook

    Commodity Outlook: A bumpy road ahead calls for diversification

    Ole Hansen

    Head of Commodity Strategy

  • FX outlook: Tariffs drive USD strength, until...?

    Quarterly Outlook

    FX outlook: Tariffs drive USD strength, until...?

    John J. Hardy

    Global Head of Macro Strategy

  • Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges

    Quarterly Outlook

    Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges

    Althea Spinozzi

    Head of Fixed Income Strategy

The information on or via the website is provided to you by Saxo Bank (Switzerland) Ltd. (“Saxo Bank”) for educational and information purposes only. The information should not be construed as an offer or recommendation to enter into any transaction or any particular service, nor should the contents be construed as advice of any other kind, for example of a tax or legal nature.

All trading carries risk. Loses can exceed deposits on margin products. You should consider whether you understand how our products work and whether you can afford to take the high risk of losing your money.

Saxo Bank does not guarantee the accuracy, completeness, or usefulness of any information provided and shall not be responsible for any errors or omissions or for any losses or damages resulting from the use of such information.

The content of this website represents marketing material and is not the result of financial analysis or research. It has therefore has not been prepared in accordance with directives designed to promote the independence of financial/investment research and is not subject to any prohibition on dealing ahead of the dissemination of financial/investment research.

Saxo Bank (Schweiz) AG
The Circle 38
CH-8058
Zürich-Flughafen
Switzerland

Contact Saxo

Select region

Switzerland
Switzerland

All trading carries risk. Losses can exceed deposits on margin products. You should consider whether you understand how our products work and whether you can afford to take the high risk of losing your money. To help you understand the risks involved we have put together a general Risk Warning series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. The KIDs can be accessed within the trading platform. Please note that the full prospectus can be obtained free of charge from Saxo Bank (Switzerland) Ltd. or the issuer.

This website can be accessed worldwide however the information on the website is related to Saxo Bank (Switzerland) Ltd. All clients will directly engage with Saxo Bank (Switzerland) Ltd. and all client agreements will be entered into with Saxo Bank (Switzerland) Ltd. and thus governed by Swiss Law. 

The content of this website represents marketing material and has not been notified or submitted to any supervisory authority.

If you contact Saxo Bank (Switzerland) Ltd. or visit this website, you acknowledge and agree that any data that you transmit to Saxo Bank (Switzerland) Ltd., either through this website, by telephone or by any other means of communication (e.g. e-mail), may be collected or recorded and transferred to other Saxo Bank Group companies or third parties in Switzerland or abroad and may be stored or otherwise processed by them or Saxo Bank (Switzerland) Ltd. You release Saxo Bank (Switzerland) Ltd. from its obligations under Swiss banking and securities dealer secrecies and, to the extent permitted by law, data protection laws as well as other laws and obligations to protect privacy. Saxo Bank (Switzerland) Ltd. has implemented appropriate technical and organizational measures to protect data from unauthorized processing and disclosure and applies appropriate safeguards to guarantee adequate protection of such data.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.