DAX, CAC and MIB Forecasts – EU Stock Markets Look Strong on Wednesday

DAX Technical Analysis

The German DAX is slightly positive in early trading here on Wednesday as we continue to go back and forth right around the 25,000 level. The 25,000 level has been like a magnet for price for a while, and I think, given enough time, we have a situation where we have to make a bigger decision. That bigger decision more likely than not will be a buy on the dip type of rally that eventually breaks above the 25,500 level.

CAC Technical Analysis

In France, we continue to see the CAC take off as we are ready to continue going towards the 8,600 level. The 8,600 level is the next large round psychologically significant figure. I think any pullback at this point in time will continue to look at the 8,500 level as a potential support level.

I do believe that based upon the bigger consolidation that we had been in, eventually the CAC goes looking to the 8,800 level.

MIB Technical Analysis

In Italy, we have the MIB getting ready to break the recent swing high and go looking towards the 48,000 level. This is a market that I think, quite frankly, could really start to take off. We will just have to wait and see, but the measured move of the consolidation that we had just been in measures for roughly 950 euros.

So, we are looking at somewhere near the 48,000 level and then the bigger measured move is going to be roughly 2,000. We are probably looking at at 50,000 at least being attempted by the time it is all said and done. This is an index that has been driven a lot higher by financials as of late, so keep an eye on those, but it looks like Italy is breaking out and ready to follow Paris to the upside.

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