Technical Update - AEX25, BEL20 and CAC40
Kim Cramer Larsson
Technical Analyst, Saxo Bank
AEX 25 spiked lower last week to the 0,50 retracement of the entire 2020-2021 bull market and just a few points off key support at 603. The following rebound was rejected Friday just below the lower level of the gap. Down trend is intact but market seems to be in a limbo. Divergence on RSI supports that picture; any upside is met with selling.
To regain upside traction a close above 653 is needed. That could create an upside to strong resistance at around 672.
If AEX drifts lower and RSI is being pushed below its slightly rising trend line selling pressure could accelerate pushing AEX below key support at 603. If AEX closes below 600 next key support ia at around 575.
BEL20 is trading in the “Gap area” between 3,374 and 3,418. A close below or above could indicate direction. A close above and BEL20 could continue its rebound resistance at 3,478 possibly test 3,500.
A close below 3,374 and BEL20 is likely to perform a new low
After jumping above the Gap Area CAC40 was rejected at the key resistance at around 6,032. There is no divergence on RSI indicating lower levels are likely. If CAC40 drops and closes back in the Gap area i.e., below 5,859 RSI will break below its rising trendline strongly indicating CAC is to test previous lows at 5,628. If that level is taken out strong support at around 5,392
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