CAC 40, FTSE 100 and SMI 20 Forecasts – Euro Area Indices Trying to Bounce on Tuesday

CAC 40 Technical Analysis

The Parisian CAC initially fell to pierce the 50-day EMA only to turn around and show signs of life. All things being equal, the market is showing signs of life as we look to form some type of hammer. The 50-day EMA, of course, is an area that has offered plenty of support, and a bounce from here could open up the move to the 8,250 Euro level, an area that previously had been resistance.

The market has pulled back quite nicely, but this is a situation where we just don’t have the momentum right now, as risk appetite is being thrown around by events in the Middle East, or maybe better put, lack of events.

FTSE 100 Technical Analysis

The FTSE 100 in England is testing the 50-day EMA as we turn around during the trading session. If we can break above the 50-day EMA, it could open up the possibility of a move to the 10,600 level. A breakdown from here could open up a move down to the 10,000 level, an area that has a large, round, psychologically significant figure.

All things being equal, though, we have recently formed a lower high, so that’s something I’m watching very closely here. The Bank of England remaining stubbornly tight is probably going to continue to be an issue, so watch that very closely. But really, at this point in time, if we do break above the 10,500 level, then we may see a little bit of momentum to the upside.

SMI 20 Technical Analysis

The Swiss market index has initially fallen to the 13,000 Swiss Franc level, only to turn around and bounce to form a bit of a hammer. If we can break above the 50-day EMA, that could open up a move back to the 13,400 Francs level. Keep in mind this one tends to be more of a grinder and there are a lot of pharmaceutical and other safety type plays, so it does make a certain amount of sense this one is becoming a little bit more aggressive to the upside in this environment. If we were to break down below the 13,000 level, it could open up the possibility of testing the 200-day EMA closer to the 12,840 level.