Technical Update - AEX 25, BEL 20 & CAC 40

Technical Update - AEX 25, BEL 20 & CAC 40

Equities 3 minutes to read

Kim Cramer Larsson

Technical Analyst, Saxo Bank

Summary: AEX 25 and CAC 40 indecisive but indicators point to lower Index levels. BEL 20 bouncing off support but struggling to get back above 200 Moving Average

AEX 25 bounced from support at 712 to just below resistance at around 741. The Index is in a downtrend (lower lows and lower highs). RSI is showing negative sentiment with no divergence indicating lower levels are likely for AEX. The Index could have another go at the strong support at around 712 and a close below is likely to further fuel a sell-off down to around 688.

For AEX to reverse this bearish picture a close above 764 is needed. A close above the 55 daily MA and above 750 will place the Index in neutral.

BEL 20 dipped below support at 3,570 to touch the 0.618 retracement but now seems to be caught between 3,600 and the 200 daily SMA around 3,700. A move above 3,710 could see further bounce to the 0.618 retracement at 3,795.
A close below 3,600 is likely to push BEL 20 back below 3,569 support to 3,497.

RSI is key showing negative sentiment but also with divergence indicating continued rebound. However, if RSI closes below its rising trendline downtrend is likely to resume

CAC 40 seems a bit indecisive but indicators point to lower levels. RSI is showing negative sentiment with no divergence and the Index sits currently below 55 daily MA.

If CAC 40 closes below 6,885 downtrend resumes with potential down to strong support at around 6,380.
A close above 7,163 will put the Index in neutral where one should wait for direction.

Author is short AEX 25.

Quarterly Outlook Q2 2023: The Fragmentation Game

Bank runs raise the stakes in the Fragmentation Game
A new fragmented world order can render some of today's infrastructure obselete, but it also calls for massive new investments across the globe, which requires a new set of strategic and tactical investment strategies.

Steen Jakobsen,
Chief Investment Officer
Read article
China in the global Fragmentation Game
As globalisation turns to fragmentation, China seems set on playing a role in the global economy, while simultaneously working towards proofing its own economic situation from external shocks and crises.

Redmond Wong,
Market Strategist
Read article
A whole new world of higher interest rates
The recent bank runs and ensuing challenges are reminicent of something we've seen before. Will it end like the S&L crises of 1986 and 1995?

Chris Dembik,
Head of Macroeconomic Research
Read article
Equities: Into the world of unknowns
Equity markets need to recalibrate to another - fragmented - global world. What's your view on equities in this market - are they going up or down?

Peter Garnry,
Head of Equity Strategy
Read article
India and Southeast Asia offer calm in the storm
With every development comes new opportunites, some of which could be in India. Have you considered the country as a part of your diversification strategy?

Charu Chanana,
Market Strategist
Read article
Protecting a long stock market position from turbulence
A collar is an option strategy that allows some protection while maintaining some upside potential. What investment would you like to use a collar strategy for?

Hans Oudshoorn,
Trainer Academy
Read article
Commodity market focus: DM weakness versus EM strength
There are arguments to be made for many commodities to have upside. Which are you paying the most attention to this quarter?

Ole S. Hansen,
Head of Commodity Strategy
Read article
FX: What happens when a tightening cycle ends before inflation is defeated?
In a very challenging macro environment, which currencies do you think will come out on top?

John J. Hardy,
Head of FX Strategy
Read article

You can access both of our platforms from a single Saxo account.

Preview platform Open Account

Disclaimer

The Saxo Bank 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 Bank 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 Bank 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 Bank 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 Bank 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 Bank 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 (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-hk/legal/disclaimer/saxo-disclaimer)

Manage consent

Details Cookies

Cookie policy

Necessary

Technical Update - AEX 25, BEL 20 & CAC 40

Kim Cramer Larsson

Share

Latest Market Insights

Quarterly Outlook Q2 2023: The Fragmentation Game

Bank runs raise the stakes in the Fragmentation Game

China in the global Fragmentation Game

A whole new world of higher interest rates

Equities: Into the world of unknowns

India and Southeast Asia offer calm in the storm

Protecting a long stock market position from turbulence

Commodity market focus: DM weakness versus EM strength

FX: What happens when a tightening cycle ends before inflation is defeated?

Your browser cannot display this website correctly.