DAX, CAC and MIB Forecasts – EU Indices Rally on Monday as Italy Looks to Lead

DAX (Germany) Technical Analysis

The German index, the DAX, has rallied a bit during early trading on Monday as we continue to see more of a grind near the 24,300 level, but I do think the other thing that technical traders are watching is the 50-day EMA and whether or not it can break back above the 200-day EMA, kicking off the so-called Golden Cross.

Regardless, this is a market that has been strong over the last several weeks with occasional pullback. I do think headlines continue to be a major problem coming out of the Middle East because you have to worry about energy being provided or energy not being provided to the European Union, though.

CAC (France) Technical Analysis

The CAC in Paris looks like it is in the middle of forming some type of base and the 50-day EMA seems to be the floor. If the market can rally from here, then 8,400 euro could be the target. Short-term pullbacks with the 200-day EMA at 8,071 euro, I think, is the floor. I like Paris. I think it does rise over time, but I also recognize that a huge sector in France is the luxury sector and that demands a little bit more risk appetite than another index, such as the DAX.

MIB (Italy) Technical Analysis

Finally, the MIB in Italy looks like it’s turning around after a nice pullback and this to me looks like a good entry so far. The 47,000 level could be your floor. The target is 49,000, I would think, at the very least, as it was the latest swing high. This was a leader previously, now it looks like it might be trying to lead things to the upside again. I like the MIB, particularly the financials in Italy, which look strong, and as a result, I’m bullish.

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