DAX 40, CAC 40 and FTSE 100 Forecasts – European Indices Struggle with Rates

DAX 40 Technical Analysis

The DAX fell apart during the trading session on Thursday as we have broken back below the 23,000 euros level, with the speech overnight coming out of Washington DC suggesting that the war was going to last several more weeks. Ironically, this had been floated out there for some time before, so I’m not really sure what the surprise was, but perhaps the narrative of Trump calling for an end to the war got too many people excited, and now we are falling apart.

That being said, I would say that this is a very possible “buy the dip” situation, although stability definitely needs to come back to the market before you risk any money. You need to see a bit of a bounce.

CAC 40 Technical Analysis

The Parisian CAC fell significantly during the trading session at the 8,000 level, with the 50-day EMA sitting just above it. The market is falling the way it has tested the 7,800-euro level, and it looks like it’s at least trying to hold, so it’ll be interesting to see if Paris can hold the line. If it can turn things around and test these moving averages, it does look like it’s at least trying to, so keep an eye on that shorter-term trades to the upside might end up being viable.

FTSE 100 Technical Analysis

The FTSE 100 in London pulled back from the crucial 10,450 level to test the 50-day EMA, which so far is holding. So much like Paris, I think this is a situation where maybe we are starting to see a little bit of value hunting, and if we can clear the 10,450 level, that would confirm it. I do think this remains a bit of a buy on the dip situation as well, although you need to do it with small positions. Big positions are certainly not advised in any market at the moment, let alone equities or indices.