Technical Update - DAX, Euro Stoxx 50, AEX25, BEL20 & CAC40

Euro Stoxx 50 has bounced off its 55 daily SMA and is moving towards 4K. Similar picture as on DAX with regards to RSI. A close above its falling trendline will indicate Euro Stoxx 50 is likely to take out its December peak at 4,035. If Euro Stoxx 50 does close above 4,035 a move to the 0.786 retracement at 4,165 is likely. For Euro Stoxx 50 to reverse this picture a close below 3,792 is needed.

AEX25. 715 is the key level for AEX. A close above and the Index is back in bullish territory with potential to 736-741 i.e., December peak.
If AEX fails to close above 715 the Index could slide back towards 690. A break below 690 is likely to fuel a sell-off down to 670-660.

BEL20 closed yesterday above 3,767 thereby confirming its uptrend. There is still divergence on RSI but if BEL20 moves higher that divergence will be traded out and furthter confirm upside potential. Resistance at around 3,875. A close below 3,631 will reverse the uptrend

CAC40 is back in bullish mode and could test the resistnace at around 6,830. A close above is slikely to extend the uptrend furhter. However, 7K could be a struggle to break with resistance at around 6,986. If CAC40 closes above 7K there is no restistance until previous highs at 7,385.
For this bullish scenario to be reversed a close below 6,470.
There is still massive RSI divergence, but RSI has not closed below 40 threshold i.e., still showing positive sentiment. If RSI closes above its falling trendline it could be a good indication that the uptrend will continue.

RSI divergence: When instrument price is making a new high/low but RSI values are not making new high/low at the same time. That is a sign of imbalance in the market and an weakening of the uptrend/downtrend. Divergence or imbalance in the market can go on for quite some time but not forever. It is an indication of an exhaustion of the trend