Technical Update - DAX and EuroStoxx50 keep sliding lower. Can they turn around?

Technical Update - DAX and EuroStoxx50 keep sliding lower. Can they turn around?

Equities 2 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank Group

DAX. Over the past few weeks, DAX has been sliding slowly lower towards the support at around 18,191 but kept itself above the 55 daily moving average. A daily close below 18,191 could fuel a sell-off down to around 17,875, potentially down to 17,620 strong support.

A daily close above 18,785 is required for DAX to establish a new uptrend with upside potential to 19,250–19,300.

RSI is still showing positive sentiment but has also been warning about bullish trend exhaustion for quite some time.

Source all charts and data: Saxo Group
GER40 CFD: Key support at 18,235. A break below could lead to a sell-off down to 17,868, possibly to strong support at around 17,612. A close above 18,780 will establish an uptrend with potential to 19,250–19,300.

EuroStoxx50 is trading in a tighter and tighter range. Breakout is needed.

A close above 5,082 is likely to send the index to new all-time highs towards 5,200.

A break (close likely not needed) below 4,942 is likely to push the index to test the key strong support at around 4,888. A daily close below 4,888 could fuel a sell-off down to around 4,800.

RSI is still showing positive sentiment, indicating breakout of the range is likely going to be to the upside. A close above the 60 threshold will confirm the bullish scenario with new all-time highs

EU50 CFD: support at 4,938. Break below could lead to a sell-off down to 4,849–4,810. A daily close above 5,082 will establish an uptrend with upside potential to 5,200, possibly higher

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