Macro: Sandcastle economics
Invest wisely in Q3 2024: Discover SaxoStrats' insights on navigating a stable yet fragile global economy.
Access both platforms from your single Saxo account.
Technical Update - European Equities rebounds after heavy sell off
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
Summary: After being hit with heavy selling past couple of days the European Equities are bouncing this morning with buyers trying to buy on the cheap. Volatility should still be expected coming days and sellers can quickly regain control
DAX tested its support area around 15,100-15,000 in what could be the third wave down. Rebounding this morning with a gap could be the fourth corrective wave in the making. A move that can take the Index to the 0,618 Fibonacci retracement of the second wave at around 15,655. However, still expect volatility over the next few days when. If the DAX moves above 15,725 the 5 wave down scenario is demolished.
If the Index closes the gap from this morning another push towards support at around 14,800 should be expected. RSI is indicating bearish sentiment i.e. we could still see lower levels.
The GER40 CFD (future) spiked below the 15K level to the support at 14,827 before a strong rebound. A rebound that could continue to 0.618 Fibonacci retracement of what looks like the third wave down.
If the GER40 moves above 15,723 the 5 wave down scenario is demolished. A move below today’s low at 15,129 expect another push to test the important support at 14,827.
OMX C25 cap seems to have found support at around 1,700. Bounce should be expected from here. Resistance at around 1,800.
NETH25 (AEX future) seems be caught a bit in “no man’s land” right in the middle between two support levels. The upper previous support at 750 is now a resistance for the bounce that seems to have set in from the morning. However, the resistance is not that strong and a bounce towards the 200 SMA is likely.
A break below 734 will very likely result in a sell off down to support at around 711.
FRA40 (CAC40 future) has bounced off strongly from its 6,730 support and the 200 SMA. The Index is back above the lower rising trend line pushing towards 7,000. 55 SMA will offer some resistance. Crucial support at around 6,658
SWISS20 (SMI future) has been hard hit by the sell off hitting markets. Price was pushed below the support at around 12,047 and the 200 SMA. If the bounce can hold on til the end of the day the SWISS20 would have formed a Doji Morning star bottom and reversal pattern. A reversal that can take the Index to the 0,618 Fibonacci retracement at around 12,516
Latest Market Insights
Quarterly Outlook 2024 Q3
Sandcastle economics
-
-
Bonds: What to do until inflation stabilises
Discover strategies for managing bonds as US and European yields remain rangebound due to uncertain inflation and evolving monetary policies.
-
Equities: Are we blowing bubbles again
Explore key trends and opportunities in European equities and electrification theme as market dynamics echo 2021's rally.
-
FX: Risk-on currencies to surge against havens
Explore the outlook for USD, AUD, NZD, and EM carry trades as risk-on currencies are set to outperform in Q3 2024.
-
Commodities: Energy and grains in focus as metals pause
Energy and grains to shine as metals pause. Discover key trends and market drivers for commodities in Q3 2024.
Disclaimer
The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.
Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-gb/legal/disclaimer/saxo-disclaimer)