DAX, CAC and FTSE 100 Forecasts – European Region Jumps on Ceasefire News

DAX 40 Technical Analysis

The DAX in Germany was going to lead the charge as it typically does, and we find ourselves well above the 200-day EMA. The German index is particularly telling because there were serious concerns about the supply of natural gas and power for Germany’s industrial base, exposing just how fragile that part of the chain of global supply really is.

A breath of relief here: short-term pullbacks, I think, find support near the 200-day EMA and, if things hold up, we could very well see the DAX start reaching toward the 25,000 level as the fiscal spending in Germany this year should be good for many of the companies on this index.

CAC 40 Technical Analysis

The CAC in Paris has shot straight up in the air and it looks like it’s going to make a beeline for the 8400 Euro level given enough time. This market remains one that I do like, and, with the last two days’ action, it really shows just how positive this market has the potential of being. 8400 Euros is your first area of resistance; after that, you’ve got the 8500 Euros level to pay attention to.

FTSE 100 Technical Analysis

The FTSE 100 in London has gapped higher, as you would expect, and it is trying to reach the 11,000 level again. I think it gets there, and I do believe that short-term pullbacks offer buying opportunities, especially if you can somehow get an opportunity to buy the FTSE 100 closer to the 10,500 level—an area that had been resistance that we just jumped over. A little bit of market memory could go a long way there. We’ll just have to wait and see how that plays out, but like the others, this is a very bullish index regardless.

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