Log in Open account
UAE
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investor accounts lose money when trading CFDs with this provider.
Show more
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs, FX or any of our other products work and whether you can afford to take the high risk of losing your money.
Show less
Technical Update - European Equity markets breaking bearish: DAX, AEX25, BEL20, CAC40 and SMI20 Technical Update - European Equity markets breaking bearish: DAX, AEX25, BEL20, CAC40 and SMI20 Technical Update - European Equity markets breaking bearish: DAX, AEX25, BEL20, CAC40 and SMI20

Technical Update - European Equity markets breaking bearish: DAX, AEX25, BEL20, CAC40 and SMI20

3 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Summary:  DAX / GER40, AEX25 / NETH25 and BEL20 / BELG20 breaking key supports. Likely to confirm bearish trend
CAC40 / FRA40 and SMI20 / SWISS20 still holding on above key supports

DAX/GER40 closed Friday back above key support at around 15,482. Currently it is trading below after a positive open.

If closing below downtrend has been confirmed supported by negative sentiment on RSI.
Next support at around 14,933-14,458 support area.

If closing the week below 15,482 downtrend has also been confirmed on the medium-term trend

For DAX to reverse the trend a close above15,990 is needed.

Source all charts and data: Saxo Group

AEX25/NETH25 is currently trading below key strong support at around 730. A daily close below will confirm the down trend and likely leading to increased selling pressure towards 716-710 support area.

Medium-term there is room down to 689 level.

To demolish the downtrend a close above 750 is needed

BEL20/BELG20 tried to get back above support around 3,632 but sellers are in control and seems likely to be pushing the BEL20 index towards next support at around 3,551.
If RSI is closing back below 40 threshold, which seems quite likely, that will add to the bearish picture

To reverse the downtrend a close above 3,7230 is needed. To demolish the bearish picture a close above 3,650 is needed
CAC40/FRA40 is still range bound but is once again trying to break below the lower rising trend line. The leading French Index is likely to test key strong support at around 7,082 shortly. A close below will confirm downtrend and could fuel a sell-off down to around 6,885-6,796 support area

SMI20/SWISS20 is fighting to keep itself above lower rising trendline. If closing below it could be signal that SMI to be hit by selling pressure down to strong support a around 10,750.

RSI is still showing positive sentiment but if closing below 40 threshold the bearish trend has been confirmed.   
Closing below its rising (blue) trendline could be first warning that SMI will turn bearish.

To confirm a bullish trend a close above 11,245 is needed

Quarterly Outlook 2024 Q3

Sandcastle economics

01 / 05

  • Macro: Sandcastle economics

    Invest wisely in Q3 2024: Discover SaxoStrats' insights on navigating a stable yet fragile global economy.

    Read article

  • Bonds: What to do until inflation stabilises

    Discover strategies for managing bonds as US and European yields remain rangebound due to uncertain inflation and evolving monetary policies.

    Read article

  • Equities: Are we blowing bubbles again

    Explore key trends and opportunities in European equities and electrification theme as market dynamics echo 2021's rally.

    Read article

  • FX: Risk-on currencies to surge against havens

    Explore the outlook for USD, AUD, NZD, and EM carry trades as risk-on currencies are set to outperform in Q3 2024.

    Read article

  • Commodities: Energy and grains in focus as metals pause

    Energy and grains to shine as metals pause. Discover key trends and market drivers for commodities in Q3 2024.

    Read article

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. This content is not intended to and does not change or expand on the execution-only service. 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)


Business Hills Park – Building 4,
4th Floor, office 401, Dubai Hills Estate, P.O. Box 33641, Dubai, UAE

Contact Saxo

Select region

UAE
UAE
Products & pricing
Platforms
Accounts & service
General
Other
Legal

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.