DAX, CAC and IBEX Forecasts – European Indices Trying to Resume Uptrend

DAX Technical Analysis

The DAX has initially fallen during the trading session but bounced a bit in early Thursday action as it looks like we are just trying to hang onto the same range we’ve been in. I expect to see a lot of noisy behavior in this general vicinity with the 23,000 level being such a major floor.

Expect choppiness. I expect the 200-day EMA above to offer a bit of a headache for buyers, but if we can get beyond that at the 24,107 Euro level, then we could go looking to 25,000.

CAC Technical Analysis

The CAC in Paris is trying to take out the 200-day EMA again on Thursday. We’ll just have to wait and see whether or not it actually can do that. Quite frankly, we’ve had 3 attempts in a row, but the fact that we are back there again for a 4th day this week is a sign of resiliency that you can’t ignore.

If we can close above 8,100 Euro, I think that’s your sign that the DAX and the CAC and other European indices all go higher. After all, this is based a lot on luxury, so if luxury can take off, everything else can.

IBEX Technical Analysis

The IBEX in Spain looks a little neutral during the day, kind of a tight range. I think it will follow the other 2 indices whatever they decide longer-term. It’s worth noting that the 17,000 Euro level is a bit of a magnet for price and support.

I also think that the 200-day EMA sitting just underneath is likely to end up being a floor as well. If we can break above the 50-day EMA, it opens up the possibility of a move to the 18,250 Euro level. I do think it rallies, but it needs the bigger indices out there to get going to drag it right along.

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