Technical Analysis Article Iages_1_1024x768M

Technical Update - European Equity markets turning bearish

Equities 5 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank Group

Summary:  European Equities are opening lower Monday morning following huge sell offs in US Friday. Most Indices broken supports indicating lower levels are likely to be seen


DAX closed Friday below the minor support at 15,724 (15,722 on the GER40 CFD). Both Index and CFD/future is now trading below the 200 SMA.

Bollinger Bands are expanding and RSI is at the time of writing below 40 indicating more selling is likely. Next support is 15,100 and 14,804 (support level at around 15,044 on the GER40 CFD).

For the current bearish picture to be neutralized a close above 15,913 is needed

 

DAX 24 jan
Source: Saxo Group
GER40 24 jan
Source: Saxo Group

DAX weekly
14,816 is the medium to longer term crucial support. A close below that support there is not strong support before around 13K. Minor support around 14,025

DAX 24 week  jan
Source: Saxo Group

OMX C25 cap 
Tug of war going on in the OMX C25 cap which closed below support at 1,800 but traders and investors are buying the dip trying to lift the Index back above the now resistance level.

The weekly close below support confirms down trend which can take the Index down to next support around 1,700. RSI still not in negative territory – now below 40- but down trend is confirm.

 

Omxc25 24 jan
Source: Saxo Group
CAC40 24 jan
Source: Saxo Group

AEX Amsterdam
The weekly close below support confirms down trend which can take the Index down to next support around 1,700. RSI still not in negative territory – now below 40- but down trend is confirm.

AEX 24 jan
Source: Saxo Group

BEL20
Similar picture on BEL 20. Support at around 4,094 is currently being tested. A daily close below is likely to fuel further selling. RSI is below 40 indicating negative sentiment

BEL20 24 jan
Source: Saxo Group
SMI

SMI has been in short term down trend for a couple of weeks after break out of Rising Wedge pattern. The Index is close to test strong support at around 12,145-12,071 (12,047 on the SWISS20 CFD). RSI is below 40 confirming the down trend.
A close below that support area is likely to fuel further selling towards October 2021 lows. For SMI to neutralize the down trend a daily close above 12,658 is needed.

 

  

 

 

SMI 24 jan
Source : Saxo Group

Outrageous Predictions 2026

01 /

  • Executive Summary: Outrageous Predictions 2026

    Outrageous Predictions

    Executive Summary: Outrageous Predictions 2026

    Saxo Group

    Read Saxo's Outrageous Predictions for 2026, our latest batch of low probability, but high impact ev...
  • A Fortune 500 company names an AI model as CEO

    Outrageous Predictions

    A Fortune 500 company names an AI model as CEO

    Charu Chanana

    Chief Investment Strategist

    Can AI be trusted to take over in the boardroom? With the right algorithms and balanced human oversi...
  • Dollar dominance challenged by Beijing’s golden yuan

    Outrageous Predictions

    Dollar dominance challenged by Beijing’s golden yuan

    Charu Chanana

    Chief Investment Strategist

    Beijing does an end-run around the US dollar, setting up a framework for settling trade in a neutral...
  • Obesity drugs for everyone – even for pets

    Outrageous Predictions

    Obesity drugs for everyone – even for pets

    Jacob Falkencrone

    Global Head of Investment Strategy

    The availability of GLP-1 drugs in pill form makes them ubiquitous, shrinking waistlines, even for p...
  • Dumb AI triggers trillion-dollar clean-up

    Outrageous Predictions

    Dumb AI triggers trillion-dollar clean-up

    Jacob Falkencrone

    Global Head of Investment Strategy

    Agentic AI systems are deployed across all sectors, and after a solid start, mistakes trigger a tril...
  • Quantum leap Q-Day arrives early, crashing crypto and destabilizing world finance

    Outrageous Predictions

    Quantum leap Q-Day arrives early, crashing crypto and destabilizing world finance

    Neil Wilson

    Investor Content Strategist

    A quantum computer cracks today’s digital security, bringing enough chaos with it that Bitcoin crash...
  • Taylor Swift-Kelce wedding spikes global growth

    Outrageous Predictions

    Taylor Swift-Kelce wedding spikes global growth

    John J. Hardy

    Global Head of Macro Strategy

    Next year’s most anticipated wedding inspires Gen Z to drop the doomscrolling and dial up the real w...
  • SpaceX announces an IPO, supercharging extraterrestrial markets

    Outrageous Predictions

    SpaceX announces an IPO, supercharging extraterrestrial markets

    John J. Hardy

    Global Head of Macro Strategy

    Financial markets go into orbit, to the moon and beyond as SpaceX expands rocket launches by orders-...
  • Britain’s Great EU Backdoor Return

    Outrageous Predictions

    Britain’s Great EU Backdoor Return

    Neil Wilson

    Investor Content Strategist

    Faced with rolling fiscal, economic, trade and political crises the UK government sneaks back into t...
  • Despite concerns, U.S. 2026 mid-term elections proceed smoothly

    Outrageous Predictions

    Despite concerns, U.S. 2026 mid-term elections proceed smoothly

    John J. Hardy

    Global Head of Macro Strategy

    In spite of outstanding threats to the American democratic process, the US midterms come and go cord...

This content is marketing material. 

None of the information provided on this website constitutes an offer, solicitation, or endorsement to buy or sell any financial instrument, nor is it financial, investment, or trading advice. Saxo Capital Market Ltd. (SCML) provides execution-only services, with all trades and investments based on self-directed decisions. Analysis, research, and educational content is for informational purposes only and should not be considered advice or a recommendation.

SCML content may reflect the personal views of the author, which are subject to change without notice. Mentions of specific financial products are for illustrative purposes only and may serve to clarify financial literacy topics. Content classified as investment research is marketing material and does not meet legal requirements for independent research.

SCML partners with companies that provide compensation for promotional activities conducted on its platform. Some partners also pay retrocessions contingent on clients investing in products from those partners. 

While SCML receives compensation from these partnerships, all educational and research content remains focused on providing information to clients.

Before making any investment decisions, you should assess your own financial situation, needs, and objectives, and consider seeking independent professional advice. SCML does not guarantee the accuracy or completeness of any information provided and assumes no liability for any errors, omissions, losses, or damages resulting from the use of this information.

Please refer to our full disclaimer and notification on non-independent investment research for more details.

Saxo
40 Bank Street, 26th floor
E14 5DA
London
United Kingdom

Contact Saxo

Select region

United Kingdom
United Kingdom

Trade Responsibly
All trading carries risk. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more
Additional Key Information Documents are available in our trading platform.

Saxo is a registered Trading Name of Saxo Capital Markets UK Ltd (‘Saxo’). Saxo is authorised and regulated by the Financial Conduct Authority, Firm Reference Number 551422. Registered address: 26th Floor, 40 Bank Street, Canary Wharf, London E14 5DA. Company number 7413871. Registered in England & Wales.

This website, including the information and materials contained in it, are not directed at, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in the United States, Belgium or any other jurisdiction where such distribution, publication, availability or use would be contrary to applicable law or regulation.

It is important that you understand that with investments, your capital is at risk. Past performance is not a guide to future performance. It is your responsibility to ensure that you make an informed decision about whether or not to invest with us. If you are still unsure if investing is right for you, please seek independent advice. Saxo assumes no liability for any loss sustained from trading in accordance with a recommendation.

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. Android is a trademark of Google Inc.

©   since 1992