Technical Update - DAX, AEX25, BEL20 and CAC40. Mind the gaps. Will they be closed and Indices resuming bear trend? Technical Update - DAX, AEX25, BEL20 and CAC40. Mind the gaps. Will they be closed and Indices resuming bear trend? Technical Update - DAX, AEX25, BEL20 and CAC40. Mind the gaps. Will they be closed and Indices resuming bear trend?

Technical Update - DAX, AEX25, BEL20 and CAC40. Mind the gaps. Will they be closed and Indices resuming bear trend?

Equities 4 minutes to read
Kim Cramer Larsson

Technical Analyst, Saxo Bank

European equity markets gapped higher Tuesday last week jumping approx. 6-8%. Buyers couldn't keep upside momentum and equities  have since been sliding back to the gap. If closing the gaps bear trend is to resume with likely lower lows 

opened the new week below 12,209 thereby closing the GAP from Tuesday. But buyers have lifted the Index trying to push it back above 12,359 which would be a strong signal for higher levels. It could become a tough task however, All Moving Averages are pointing lower, and RSI is showing negative sentiment supporting bearish picture.
If DAX drops back below 12,209, and especially closing below, selling pressure is likely to accelerate pushing DAX to new lows
Source for all chart and data in this article: Saxo Group

On weekly chart DAX formed a Bullish Engulfing candle last week (Dax opened lower than closing of previous week and closed above the opening of previous week) An Indication of buyers taking control i.e., bottom and reversal. There is also divergence on RSI supporting a bottom and reversal scenario.
However, if DAX drops below last week’s low that scenario is cancelled and reversed. Strong support at around 11,580.
If DAX closes above 12,674 it could test the upper falling trendline.


AEX25 closed has closed its gap this morning. It needs to close below 645.80 however, for confirmation.
If AEX does close below 645.80 new lows are likely. Support at around 603 and 575. If AEX on the other hand closes above 653 a push higher should be expected.

BEL20 closed its gap Friday resuming bear trend. All indicators point to lower levels; SMA’s dropping and RSI below 40 without divergence supports the bearish outlook with support at around 3,235.
However, if BEL20 find buyers and closes above 3,418 and RSI closes above its upper falling trend line BEL20 could push to test resistance at 3,506 possible higher.


CAC40 jumped strongly last week to close above 6,300. But it could not keep momentum sliding back and if CAC40 closes below 5,794 it has closed the gap resuming bear trend with support at 5,392. To get upside traction CAC must close above 6,040. Resistance at around 6,234


The Saxo Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
- Notification on Non-Independent Investment Research (
- Full disclaimer (

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments. Saxo does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo or its affiliates.

Saxo Capital Markets HK Limited
19th Floor
Shanghai Commercial Bank Tower
12 Queen’s Road Central
Hong Kong

Contact Saxo

Select region

Hong Kong S.A.R
Hong Kong S.A.R

Saxo Capital Markets HK Limited (“Saxo”) is a company authorised and regulated by the Securities and Futures Commission of Hong Kong. Saxo holds a Type 1 Regulated Activity (Dealing in Securities); Type 2 Regulated Activity (Dealing in Futures Contract); Type 3 Regulated Activity (Leveraged Foreign Exchange Trading); Type 4 Regulated Activity (Advising on Securities) and Type 9 Regulated Activity (Asset Management) licenses (CE No. AVD061). Registered address: 19th Floor, Shanghai Commercial Bank Tower, 12 Queen’s Road Central, Hong Kong.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Trading in leveraged products may result in your losses exceeding your initial deposits. Saxo does not provide financial advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo does not take into account an individual’s needs, objectives or financial situation. Please click here to view the relevant risk disclosure statements.

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit

The information or the products and services referred to on this site may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and services offered on this website are not directed at, or intended for distribution to or use by, any person or entity residing in the United States and Japan. Please click here to view our full disclaimer.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the US and other countries. AppStore is a service mark of Apple Inc. Android is a trademark of Google Inc.