DAX, CAC and MIB Forecast – EU Indices All Look to Rise

DAX Technical Analysis

The DAX in Germany is up about 0.8% right away on Monday, bouncing from the 50-day EMA. Of course, this is an index I have been watching for a while, as we had broken to the upside only to pull back, and now, we are retesting that previous resistance.

I do think the DAX goes higher, and I do think it is only a matter of time before we not only hit the 25,500 level again but perhaps go looking at the 26,000 level. A breakdown from here opens up the possibility of a move down to the 200-day EMA, but I think that would be more or less a systematic thing, and I do not think it would necessarily be contained to just the DAX.

CAC Technical Analysis

The Parisian index has shown itself to be bullish after initially plummeting, finding plenty of support near the 8,000-euro level to turn things around. The 200-day EMA sits right there as well, so it makes a certain amount of sense. Keep in mind, though, the CAC in Paris tends to be more heavily weighted by luxury as well, so this is an argument on the actual health of the high-end consumer while also looking at European growth in general.

The market now is facing a gap just above, so it will be interesting to see if we can get to the 8,275 level, because if we can, then it will have been filled, and anything above there, I think, gets really bullish.

FTSE MIB Technical Analysis

The Italian MIB looks very strong as the 45,150 area has provided a floor yet again. All things being equal, I think we are going to go looking to the 46,250 level. Anything above there opens up a much bigger move and I think a continuation of this overall uptrend that we have seen for some time. I have no interest in shorting indices anywhere in the world, much less Europe.

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