Technical Analyst, Saxo Bank Group
Summary: While BEL20/BELG20 is moving higher DAX/GER40 and AEX 25/NETH25 are struggling for momentum with strong resistance levels. CAC40/FRA40 closed above resistance but indicators have not yet confirmed bullish trend
DAX seems to be struggling for upside momentum being rejected at the key strong resistance at around 16,210 a couple times.
DAX is above the Cloud and above all daily Moving Averages but RSI is still showing negative sentiment. It needs to close above 60 threshold to switch to positive sentiment
An Index close above 16,210 and RSI above 60 will confirm uptrend with potential to test all-time highs at around 16,427 but DAX will quite likely move higher by a break of the 16,210 resistance
If DAX is failing to close above 16,210 it could slow slide back to support at around 15,782
GER40 cfd: Key resistance at around 16,210. Close above could fuel a rally to 16,500 possibly 16,680
AEX25 RSI is showing positive sentiment suggesting higher AEX levels but a close above 781 is needed for uptrend confirmation.
A close above 781 is likely to fuel a rally to 802 possibly 830.
If AEX fails to break higher the ranger bound scenario is likely to continue for next couple of weeks. Range bound between 781 and 748.
NETH25 cfd. 781 resistance is key. Could be range bound between 781 and 748.
BEL20 is moving higher towards 3,850-3,950.
Short-term a minor correction could be seen but for BEL20 to have the uptrend demolished a close back below 3,668 is minimum requirement.
RSI is bullish with no divergence and the 100 and 200 daily Moving Averages are giving some support. BELG20 cfd: Testing minor resistance at around 3,795. Minor setback should be expected before BELG20 is likely to move higher towards 3,850-3,950.
A close of the gap and below 3,679 will demolish the bullish scenario
CAC40 closed Friday above resistance at around 7,404 but RSI didn’t manage to confirm the uptrend by closing above 60 threshold. The bullish break could be a false break. Next couple of days will tell but the 21, 55 and 100 are adding bullish support suggesting higher levels on CAC40.
Technically there is a short-term uptrend that could lift the index to 7,581 possibly 7,657 but keep an eye on the daily RSI 60 threshold
A close below 7,291 is likely to send CAC 40 to test support at around 7,100
FRA40 cfd: Closed Friday above resistance and is in uptrend but RSI hasn’t yet confirmed it by a close above 60 threshold. If it doesn’t (RSI closing above 60) FRA40 could slide back.
However, the Moving Averages are suggesting higher Index levels are likely.
A close below 7,2165 is likely to send FRA40 to test key support at around 7,080
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