Technical Update - CAC40, AEX, SMI and OMXC25
Kim Cramer Larsson
Technical Analyst, Saxo Bank
CAC40 bounced off of the support at around 6,421 yesterday. Bounce continues today. What to look out for is the candle body gap to be closed i.e. a daily close above 6,634. If that occurs we could see further rebound. If rejected selling pressure is likely coming back.
AEX Amsterdam 25 Index dropped below the support at 714 to find strong support at 700. The 714 levels seems to be pivotal for Bulls/Bears. A close above could give further upside possibly to around 735. A close below the 700 support will come under pressure. If we see a daily close below 700 there is great risk down to around 600.
The leading Swiss Index SMI found has bounced off of the 11,491 support. If closing the day above 11,878 we could se further upside towards 12,145 resistance. A close below and the 11,491 support will be challenged once again.
OMXC25Cap seems to be trading in a falling channel. Tested the upper level in the strong support area around 1,563-1,533 and has performed a strong bounce. A bounce that if closing on the daily above the upper falling trend line could extend to test 1,800 resistance.
If instead it closes the body gap from this morning i.e. a daily close below 1,657 the 1,563-1,533 support area is likely to come under renewed selling pressure.
Latest Market Insights
Outrageous Predictions 2023: The War Economy
- The constantly growing global need for energy drives the world's richest to huddle up and launch a R&D project in a size the world hasn't seen since the Manhattan Project gave the US the first atomic bomb.
French President Macron resignsThe political stalemate in France and the rise of Marie Le Pen following the 2022 elections corners President Macron, forcing him to give up on politics and resign from his position. At least for now.
Gold rockets to USD 3,000 as central banks fail on inflation mandateAs markets and central banks realise that the idea that inflation is transitory is wrong, and that prices will remain higher for longer, gold is sent through the roof, hitting a price tag of USD 3,000
EU Army forces EU down path to full unionWith continued challenges in the region and a US military that isn't aggressively enacting its former role as global policeman, the European Union agrees to create its own armed forces, bringing the whole region closer.
A country agrees to ban all meat production by 2030In an effort to become one of the global leaders on the path to net-zero emissions, one country decides to not only put a heavy tax on meat, but to ban domestic production entirely.
UK holds UnBrexit referendumFollowing a recession and domestic pressure, the United Kingdom is thrown into political turmoil that will end with a vote to wind back Brexit.
Widespread price controls are introduced to cap official inflationHistory tells us that with the war economy comes rationing and price controls. And this time is no different, as policymakers introduce strict price controls that lead to a range of unintended consequences.
OPEC+ & Chindia walk out of the IMF, agree to trade with new reserve assetSanctions against Russia have caused widespread turmoil due to US Dollar moves in countries across the globe that don't consider the US an ally. To relieve themselves from this, they leave the IMF and create a new reserve asset.
USDJPY fixed to the USD at 200 as Japan overhauls financial systemFollowing the challenges that faced the Japanese Yen in 2022, the Bank of Japan attempts to keep the currency from sliding. Unsuccessful on the long-term, Japan will launch a reset of its entire financial system.
Tax haven ban kills private equityWith the war economy comes an increased focus on national interests and sovereign nations' ability to assert themselves. In that regard, the OECD countries turn their attention on tax havens and pull the big guns out, banning them altogether.