Macro: Sandcastle economics
Invest wisely in Q3 2024: Discover SaxoStrats' insights on navigating a stable yet fragile global economy.
Technical Analyst, Saxo Bank Group
AEX 25 is choppy around the 0.618 retracement and seems to be range bound in a tight range between 664 and 680. Break out is needed for direction. However, the trend is down and a breakout to the upside is likely to be short-lived possibly up to around 700 before downtrend is likely to resume.
If breaking out to the downside AEX is set for a test of the June lows at around 632 with support at around 655.
BEL20 spiked down to the support at 3,506 now hovering around 3,562. If the Index closes above 3,619, we could see a rebound to around 3,722 before downtrend is likely to resume.
If BEL20 closes below 3,562 there is no strong support before around 3,235 close to the 0.618 retracement of the Covid scare lows at 2,406 to 2021 peak.
However, the Index which is trading around the 0.618 retracement of the Q4 2020 correction trough to 2021 peak and could find some support at the 0.764 retracement at 3,332.
CAC40 is bouncing from key support at around 6,031. A bounce that could take the leading French Index to 6,200-6,300. However, the trend is down and will remain down despite a possible bounce to 6,300. A down trend that is likely to take CAC down to test the July lows at around 5,786.
Disclaimer
The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.
Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-gb/legal/disclaimer/saxo-disclaimer)