Technical Update - CAC40, AEX25, BEL20, SMI20 & ITALY40
Kim Cramer Larsson
Technical Analyst, Saxo Bank
CAC40/FRA40cfd is trading very similar to DAX with the Index hovering around the 0.618 Fibonacci retracement level. Do gain further upside CAC needs to break above 6,680. That would most likely lead to a test of the 200 daily Simple Moving Average (SMA) just below 6,800 and a possible test of the Neckline of the Shoulder-Head -Shoulder pattern.
However, current resistance could be too strong , RSI (Strength Indicator) is still below 60 threshold i.e. still in bearish sentiment. A break below 6,460 will most likely lead to bear trend to resume.
Contrary to DAX and CAC40, AEX25/NETH25cfd seems to be struggling bouncing much above the 0.382 retracement. Will it reach 0.50 retracement? Jury’s still out though. However, RSI below 60 i.e bearish sentiment and if AEX drops back below 700 the bear trend is likely to resume
BEL20 has bounced stronger than most other European markets. Above 0.764 retracement and close to the strong resistance at around 4,155. RSI is flirting with the 60 bull/bear threshold but is likely to be rejected. If BEL20 closes the gap between two dashed lines bear trend is to resume.
SMI20/SWISS20 cfd is trading above 0.764 retracement around both the 200 and 55 SMA. Strong resistance at 12,422.
If RSI cannot close above 60 threshold bears are likely to regain control.
Italy40cfd is trading around 0.50 retracement trying to push higher. Some resistance at 25,065 and strong resistance at around 26K. If the Index trades below 23,821 bears are likely to regain control sending the Index towards previous lows.
Quarterly Outlook Q2 2022
Quarterly Outlook Q2 2022: The End Game has arrived
- Shocks from covid and the war in Ukraine have forced the global financial and political world to change, but what will the end game be?
Productivity and innovation have never been more importantAs the world economy hits physical limits and central banks tighten their belts, could equities be facing a 10-15% downside?
The great EUR recovery and the difficulty of trading itIf the terrible fog of war hopefully lifts soon, the conditions are promising for the euro to reprice significantly higher.
Tight commodity markets – turbocharged by war and sanctionsWith supply already tight, commodities keep powering on. But will it last for yet another quarter?
Between a rock and a hard placeGeopolitical concerns will add upward price pressures and fears of slower growth, while volatility will remain elevated.
The Great ErosionInflation is everywhere and central banks try to combat it. But will they get it under control in time?
Australian investing: Six considerations amid triple Rs: rising rates, record inflation and likely recessionWhile global financial markets are struggling in an uncertain world, the commodity-heavy Australian ASX index is poised to keep a positive momentum.
Cybersecurity – the rush to catch up with realityWith the invasion of Ukraine, governments and private companies are rushing to reinforce their cyber defenses.