Technical Update - AEX 25 and CAC 40 in confirmed down trends. BEL20 broken out of its range
Kim Cramer Larsson
Technical Analyst, Saxo Bank
AEX 25 opened Monday morning spot on the 0.382 retracement and support at 696. RSI is testing 40 threshold and a close below confirms the downtrend.
Next support for AEX is at 671 which is also the 0.618 retracement. To reverse the down trend a close above 736 is needed. A close above 723 is likely to just put the Index in neutral.
BEL20 broke below its short term rising trend line now trading below June/July lows. March low at around 3,567 is likely to be tested.
RSI is below 40 supporting the negative outlook and lower levels. To put BEL20 back in neutral a close above 3,765 is needed.
CAC 40 is in a confirmed downtrend likely to trend lower. Some support at around 6,100. If CAC 40 can close the gap from this morning a minor bounce is likely to be seen. However, it will be a struggle to close it and for CAC 40 to reverse the current down trend a close above 6,450 is needed.
If RSI closes below 40 it further underlines the downtrend. A trend that can take CAC to test July lows.
Latest Market Insights
Quarterly Outlook Q3 2022: The Runaway Train
- Central banks' attempts to kill inflation is a paradigm shift, which could end in a deep recession.
Tangible assets and profitable growth are the winnersWith US equities officially in a bear market, the big question is where and when is the bottom in the current drawdown?
Understanding the lack of investment appetite among oil majorsThe everything rally seen in recent quarters has become more uneven, as its strength is driven by commodities in short supply.
The pressure is on as the wind leaves the sailsWith cryptocurrencies in sharp decline, are we entering a crypto winter or is the bear market a healthy clean-up of the crypto space?
Why the Fed can never catch up and what turns the US dollar lower?Many other central banks are set to eventually outpace the Fed in hiking rates, taking their real interest rates to levels higher than the Fed will achieve.
Bank of Japan: Swimming against the tideThe Japanese economy has gone from the age of deflation to rapidly rising prices in no time, leaving the Bank of Japan in a pickle.
Green transformation detour and bear market hibernationWith the impending risk of global econonomic derailment, we share the five things investors need to consider in this new half year.
Crisis redux for the eurozone?Whether there's going to be a recession in Europe or not, the path towards a stable economy will be agonizing.
Technical Outlook: Gold, Oil and a remarkable multi-decade perspective on EquitiesThe Nasdaq bubble pattern, USDJPY resistance, crude oil uptrend losing steam and the technical outlook for USD.
China: the train of new development paradigm left the station two years agoChina is transiting to a new development paradigm, as they are hit by deteriorating terms of trade, a slower global economy and an uncertain future while continuing attempts to contain the pandemic.