Technical Update - AEX25 , BEL20 and CAC40 Technical Update - AEX25 , BEL20 and CAC40 Technical Update - AEX25 , BEL20 and CAC40

Technical Update - AEX25 , BEL20 and CAC40

Equities 3 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Summary:  AEX25 moving higher closing in on strong resistance level
Frontrunner BEL20 seems to have hit strong resistance, can it break it?
CAC40 closed Friday above key resistance eyeing 7.000


AEX25 has moved higher after closing above key resistance at 715. Next resistance at 741. A close above will pave the way to 772-773 which is around the 1.618 Projection of the December correction.
To reverse this uptrend a close below 688 is needed.

Source all charts and data: Saxo Group

BEL20 is close to be testing key strong resistance at around 3,875. If BEL 20 fails to close above a correction could be seen. RSI also needs to close above December peak i.e., above the horizontal line to gain further momentum.
If BEL20 closes above 3,875 and RSI closes above the line 4K could be tested in January.
If BEL2 is being hit by selling pushing the index below the 200 daily SMA the Index could be stuck in range between 3,600 and 3,800. With the 200 daily SMA declining and the 55 SMA and 21 SMA rising there seems to be at tug of war between the longer-term and the medium-/short-term sentiment.

CAC40 closed Friday above key resistance at 6,829. Despite still diverge4nce on RSI there is likely more upside to 7K which is around the 1.382 Fibonacci projection of the December correction.
An RSI close above its upper falling trendline will confirm this scenario.
For this bullish scenario to be reversed a close below 6,388 is needed. First indication of this to play out would be a close below 6,641

 

 


 

 

RSI divergence: When instrument price is making a new high/low but RSI values are not making new high/low at the same time. That is a sign of imbalance in the market and an weakening of the uptrend/downtrend. Divergence or imbalance in the market can go on for quite some time but not forever. It is an indication of an exhaustion of the trend

 

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/legal/disclaimer/saxo-disclaimer)
- Full disclaimer (https://www.home.saxo/en-mena/legal/disclaimer/saxo-disclaimer)


Boulevard Plaza, Tower 1, 30th floor, office 3002
Downtown, P.O. Box 33641 Dubai, UAE

Contact Saxo

Select region

UAE
UAE

Trade responsibly
All trading carries risk. Read more. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

Saxo Bank A/S is licensed by the Danish Financial Supervisory Authority and operates in the UAE under a representative office license issued by the Central bank of the UAE.

The content and material made available on this website and the linked sites are provided by Saxo Bank A/S. It is the sole responsibility of the recipient to ascertain the terms of and comply with any local laws or regulation to which they are subject.

The UAE Representative Office of Saxo Bank A/S markets the Saxo Bank A/S trading platform and the products offered by Saxo Bank A/S.