Technical Update - AEX 25 and CAC 40 in confirmed down trends. BEL20 broken out of its range
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
AEX 25 opened Monday morning spot on the 0.382 retracement and support at 696. RSI is testing 40 threshold and a close below confirms the downtrend.
Next support for AEX is at 671 which is also the 0.618 retracement. To reverse the down trend a close above 736 is needed. A close above 723 is likely to just put the Index in neutral.
BEL20 broke below its short term rising trend line now trading below June/July lows. March low at around 3,567 is likely to be tested.
RSI is below 40 supporting the negative outlook and lower levels. To put BEL20 back in neutral a close above 3,765 is needed.
CAC 40 is in a confirmed downtrend likely to trend lower. Some support at around 6,100. If CAC 40 can close the gap from this morning a minor bounce is likely to be seen. However, it will be a struggle to close it and for CAC 40 to reverse the current down trend a close above 6,450 is needed.
If RSI closes below 40 it further underlines the downtrend. A trend that can take CAC to test July lows.
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