Technical Update - AEX25 testing resistance. BEL20 struggling to confirm uptrend. CAC40 uptrend is stretched
Kim Cramer Larsson
Technical Analyst, Saxo Bank
AEX25 is hovering around strong resistance at around 670-673. RSI hasn’t closed above 60 i.e., still showing negative sentiment.
A close above 673 could push AEX25 to strong resistance around 700.
If AEX cannot close above 673 sellers could regain control and push the Index to close below 654 bear trend is resuming pushing AEX towards previous lows.
Medium-term AEX needs to close above falling trendline to indicate uptrend what will be confirmed by a close above 737
BEL20 is dancing around the 0.618 retracement of the September sell-off at 3,560. RSI has not closed above 60i.e., still negative sentiment. The short-term trend is up but if BEL20 fails to close above 3,580 and RSI fails to close above 60 the trend is likely to reverse.
If BEL20 closes below 3,478 bear trend could resume and will be confirmed by a close below 3,397.
If buyers can close the Index above 3,580 there is room up to around 3,740-3,766 with some resistance at 3,639
Medium-term BEL20 needs to close above 3,740 to reverse to uptrend.
CAC40 is in a short-term uptrend supported by RSI above 60. There is divergence on RSI however, meaning the uptrend/bounce could be exhausting. Strong resistance around 6,394.
If CAC40 drops back below the 55 SMA sellers could get a second wind sending the Index lower. Support at 5,953 and 6,040.
Medium-term trend is still down until CAC closes above 6,610 and above falling trendline
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