Technical Update - AEX25, BEL20 & CAC40
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
Summary: AEX25 and CAC40 trying to build uptrend struggling to break resistance. BEL20 has confirmed short term uptrend. How high can it go?
AEX25 tested resistance at 675 Friday. It needs to close above to establish an uptrend. However, there is resistance already at 680. If close above 680 AEX will have closed the gap which could energise buyers to push the index higher.
IF AEX fails to close above t675 bear trend could resume. If taking out last weeks low at 643 we are likely to see new lows. If AEX drops below the 21 SMA there is a great likelihood this scenario will unfold. It could be supported if RSI breaks below its rising trend line.
BEL20 has established an uptrend by closing above its falling trend line and closing above 3,786. An uptrend that can take BEL20 to the 0.382 retracement just below 3,900.
If BEL20 closes below 3,743 the uptrend is likely to be cancelled and we could see a test of lows at 2,638.
CAC40 is still in a down trend. It needs to close above 6,157 and close the gap to revers that. IF CAC does close the gap the Index could rebound to test the falling trend line.
However, the trend is still down and if the index closes below today’s (Monday 11th July) low and RSI moves back below 40 we are likely to see a test of lows at 5,756
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