Technical Update -Uptrend to continue in AEX25, BEL20 & CAC40 but expect a correction soon Technical Update -Uptrend to continue in AEX25, BEL20 & CAC40 but expect a correction soon Technical Update -Uptrend to continue in AEX25, BEL20 & CAC40 but expect a correction soon

Technical Update -Uptrend to continue in AEX25, BEL20 & CAC40 but expect a correction soon

Equities 3 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank Group

Summary:  Stock Indices in Europe have experienced a strong start to the new year with only one down day since December. There is room for further upside but trends do start to look a bit stretched. A correction should be expected this week.



Today's Saxo Market Call podcast.
Today's Market Quick Take from the Saxo Strategy Team

AEX25
has closed above key resistance at 741 and seems set for higher levels. Despite the new highs RSI hasn’t broken above the divergence level (horizontal line on RSI indicator) which is a bit of a worry. However, the trend is up and there is no resistance until around 772. But do expect some minor corrections.
A close below 724 will neutralize the uptrend and could be a signal of a larger correction to unfold.



Source all charts and data: Saxo Group
BEL20 closed above key resistance at 3,875 last week supported by higher levels on RSI and no divergence which indicates BEL20 is likely to move higher to test next resistance at around 4,012. A spike up to take out 4K followed by a correction is in the cards.
A close below 3,831 is likely to reverse the short-term uptrend

CAC40 has experienced a strong uptrend reaching 1.382 projection of the December correction and taking out 7K. But there could be more upside in the cards for CAC40. ´RSI is bullish and with no divergence indicating higher levels. A move up to minor resistance area around 7,092-7,155 seems likely. However, do expect a correction to kick in shortly but short-term uptrend is intact as long as CAC doesn’t close below 6,829

RSI divergence: When instrument price is making a new high/low but RSI values are not making new high/low at the same time. That is a sign of imbalance in the market and an weakening of the uptrend/downtrend. Divergence or imbalance in the market can go on for quite some time but not forever. It is an indication of an exhaustion of the trend

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)

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