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Technical Update - DAX in downtrend. AEX25 and CAC40 testing key supports. BEL20 downtrend weakening
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
Summary: DAX/GER40 in downtrend finding support at 15,482. Potential to 15K
AEX25/NETH25 testing key support at 748
BEL20/BELG20 down trend weakening but could drop further
CAC40/FRA40 range bound testing key support at 7,083
DAX closed below support at 15,625 confirming a short-term down trend. RSI below 40 further confirming the bearish trend. Finding some support at around 15,482 DAX could drop to test 15K level.
To resume uptrend a close above 16K is a minimum requirement
GER40 cfd: Bouncing from support at 15,500 but bearish picture is confirmed with RSI closing below 40 threshold Thursday
AEX 25 was rejected at the rising trendline now testing key support at around 748. RSI hasn’t yet closed below 40 meaning it is technically still showing positive sentiment. IF AEX closes below 748 and RSI closes below 40 a bear trend has been confirmed.
If AEX can keep itself above 748 the Index could be range bound for the next few days or week
NETH25 cfd: bouncing from 748 support. Could be range bound next few days. A close below 748 and RSI close below 40 could fuel a sell off down to around 735-730
BEL20 down trend is weakening with divergence on RSI. However the trend is still down ant and BEL20 could slide lower to support at around 3,378 possibly dipping to around 3,300
A daily close above 3,572 could fuel a short rally towards 3,668-3,700
BELG20 cfd:
CAC40 is testing key support around 7,083. Index is in a confirmed down trend however, with the RSI below 40. A down trend that could take CAC40 below 7K, testing the 0.786 retracement at 6,964. Around that level the 200 daily Moving Average will add some support.
However, no strong support until around 6,885-6,796
To reverse the bearish trend a close above 7,427. However, if the Index can keep closing above 7,083 it could trade in a range between 7,400 and 7,000
FRA40 cfd: in downtrend hovering around the 0.618 retracement and 7,100 level. Could drop to the 0.786 retracement at 6,965 and support at around 6,950.
Need to close above 7,30 to demolish bearish outlook.
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