Technical Update - AEX25. BEL20 and CAC40 in strong uptrends. Will they last?
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
AEX25 closed Friday above resistance at 703.40 after trading above during the session touching 0.786 retracement around 710.
If AEX25 closes below 703 it could see a correction that could take the Index down to 690 possibly 680
RSI is showing positive sentiment indicating higher levels and there is no resistance on the AEX Index until around 736-741
If AEX closes below the 200 daily SMA bears could get renewed energy and a close below 670 will result in AEX turning bearish.
AEX25 is at the time of writing trading above the medium-term falling. The 100 and 55 weekly SMA’s are providing so0me resistance btu strong resistance is around 740.
Weekly RSI is still negative and needs to close above 60 to change that.
BEL20 closed Thursday above resistance at 3,619 extending to the short-term uptrend. RSI indicates BEL20 could extend the uptrend possibly to the strong resistance area around 3,740-3,767.
If BEL20 closes below its short-term rising trend the uptrend is in jeopardy and a close below 3,569 is likely to result in downtrend to resume.
BEL20 has broken above its medium-term falling trend line. RSI is still showing negative sentiment and there is strong resistance around 3,740. Weekly 200 SMA will add to the strength of the resistance level.
CAC40 closed Friday just below key resistance at 6,609. Hovering around the resistance the key question is, will CAC40 close above or below. A close above will indicate CAC40 to expend its strong short term uptrend.
The leading French index has already broken the medium-term falling trend line (see weekly chart) and a close will confirm the medium-term uptrend with no resistance until around 6,830
If CAC40 fails to close above 6,609 the Index is likely to slide back. A close below short-term rising trendline followed by a close below 6,381 is likely to awaken the bears to push the CAC down to around 6,183 support.
Latest Market Insights
Q4 Outlook 2022: Winter is coming
- Winter is coming to the financial markets as central banks are tightening their grip. How spring will look is still a question.
European energy crisis: it will get worse before it gets betterThe winter in Europe will be tough, but whether the result is political chaos or sustainable, innovative solutions is still undecided.
A difficult and volatile quarter awaitsAs the year draws to an end, commodities continue to be at centre stage of the world with growth pockets political uncertainty.
The bright side: crises drive innovationThe positive spin on crises is that they come with solutions. It is worrisome that deglobalisation may be a response to this crisis.
Green transformation in China: renewable energy and beyondGoing green, China needs to span numerous energy sources to ensure stability, as every source comes with a challenge.
Asia: Intermittent solutions, but a faster renewable adoption curveAsian energy supply is being squeezed. This and the adoption of renewables may change the investment sentiment in the region.
FX: A Fed thaw needed to deliver a sustained USD turn lowerThe US Dollar can keep momentum when the Federal Reserve continues to tighten, leaving the rest to play to their drum.
Autumn can become ugly for equities and bond holders. Comfort for Dollar longsTechnical analysis suggests that equities could face a tough Q4 as could fixed income. US Dollar positions could provide some upside.
The next stock market sector to watch, with stocks going nuclearAs the world scrambles to find affordable, sustainable energy, nuclear is getting attention from politicians and investors alike.
The crypto space is getting cold when the hype disappearsCryptocurrencies face a winter of their own as retail investors and governments are asking tough questions.
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)