Technical Update - AEX, BEL and CAC bouncing from support. Can it move higher and reverse trend?
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
However, the 701-705 resistance area could prove too strong to break. If it does next will be 722.50.
If AEX close below 679 the rebound is likely over and bear trend likely to resume.
BEL20 bounced from 3,500 support. Trend is down however and will remain so until a close above 3,767. If BEL retreats and closes below 3,638 bear trend is likely to resume and a re-test of the 3,500 key level is likely. RSI is showing negative sentiment and no divergence indicating lower levels are likely
CAC40 bounced from support at 6,031 and is testing minor resistance at 6,304. A close above and CAC could move higher to test the key resistance at 6,450.
If CAC slips back below 4,200 the support at 6,031 is likely to be tested once again. If that plays out the support is quite likely broken and July lows at 5,786 is likely to be tested.
RSI showing bearish sentiment and no divergence supports the bearish outlook.
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