DAX, CAC and IBEX Forecasts – European Indices Looking to Rise Again

DAX Technical Analysis

The DAX in Germany looks like it is stable during the Friday session. But really, at this point, we have to pay attention to the fact that we’re hanging out just above the 25,000 level. The 25,000 level, of course, is a large, round, psychologically significant figure that will attract a lot of headlines.

Over the space of the last month or so, we have filled the gap here recently. We filled the gap a couple of days ago, and now the question is, can we continue the upward momentum? I do think that happens eventually, as the German government is throwing a ton of money into stimulus.

CAC Technical Analysis

The Parisian index has rallied quite nicely as the CAC finds itself at fresh highs. The 8,400-euro level looks to be supported right along with the 8,350-euro level. The nice volume on the breakout, of course, is a good sign, so I do think it’s probably only a matter of time before we get a little bit of follow-through.

It has been a strong performer here for several weeks. I have no interest in shorting this market, and if we do get a little bit of a pullback, I think that ends up offering a buying opportunity. Keep in mind that short-term pullbacks will probably have FOMO chasers trying to get involved. Furthermore, you should keep in mind that in France, you have to pay attention to the luxury sector.

IBEX Technical Analysis

The IBEX in Spain is a little bit positive, but it continues to see a barrier at 18,250 euro. If we can break above there, it opens up a move of about 600 euros, maybe 650 euros to the upside to find itself just shy of 19,000 euro.

It’s been a nice uptrend. The 50-day EMA now sits at the support levels as well, and I think the IBEX will take off if we can get the DAX moving a little bit because, of course, money starts to spread out into the periphery. With the CAC taking off, that’s the first part of the leg. The Germans need to get it moving and then places like Italy, Spain, and Switzerland will start to see more money flow towards it.

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