Technical Update - AEX 25 going vertical. CAC 40 breaking falling trendline. BEL 20 still range bound
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
After closing above 676 and the falling trendline AEX25 has been on fire taking out key resistance at 719. RSI indicates higher levels are likely but a correction around currently levels and down around 700 before uptrend resumes should be expected. 200 SMA provides resistance but a move to test key resistance at 741 is likely. IF closing above the uptrend could be extended to around 770.
CAC 40 broke above its medium-term falling trendline and is set for higher levels to strong resistance at around 6,593. The Index seems to e trading in a steep rising channel. However, a correction down to test the falling (black) trendline is likely before next push higher.
To reverse the trend a close below 6,143 is needed.
BEL 20 is stuck in a sideways range between 3,638 and 3,805. The leading Belgian Index has tried three times to penetrate the upper band but failed to close above. A close above is needed for upside momentum. If BEL 20 closes above next strong resistance is at 3,925 and around 4,043.
Currently, however, with the failed upside break and RSI still being negative, it seems more likely BEL 20 is to test lower band i.e. 3,638. A break below 3,711 could be the signal for that scenario to play out.
Latest Market Insights
Quarterly Outlook Q3 2022: The Runaway Train
- Central banks' attempts to kill inflation is a paradigm shift, which could end in a deep recession.
Tangible assets and profitable growth are the winnersWith US equities officially in a bear market, the big question is where and when is the bottom in the current drawdown?
Understanding the lack of investment appetite among oil majorsThe everything rally seen in recent quarters has become more uneven, as its strength is driven by commodities in short supply.
The pressure is on as the wind leaves the sailsWith cryptocurrencies in sharp decline, are we entering a crypto winter or is the bear market a healthy clean-up of the crypto space?
Why the Fed can never catch up and what turns the US dollar lower?Many other central banks are set to eventually outpace the Fed in hiking rates, taking their real interest rates to levels higher than the Fed will achieve.
Bank of Japan: Swimming against the tideThe Japanese economy has gone from the age of deflation to rapidly rising prices in no time, leaving the Bank of Japan in a pickle.
Green transformation detour and bear market hibernationWith the impending risk of global econonomic derailment, we share the five things investors need to consider in this new half year.
Crisis redux for the eurozone?Whether there's going to be a recession in Europe or not, the path towards a stable economy will be agonizing.
Technical Outlook: Gold, Oil and a remarkable multi-decade perspective on EquitiesThe Nasdaq bubble pattern, USDJPY resistance, crude oil uptrend losing steam and the technical outlook for USD.
China: the train of new development paradigm left the station two years agoChina is transiting to a new development paradigm, as they are hit by deteriorating terms of trade, a slower global economy and an uncertain future while continuing attempts to contain the pandemic.
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)