DAX, CAC and MIB Forecasts – Europe Drops Early on Thursday

DAX Technical Analysis

The DAX in Germany did try to rally initially during the session but it looks like we are giving up those gains rather quickly. With that being the case, it looks very much like a market that I think is going to stay in the same range that we have been in with the 24,000-level underneath offering a bit of support.

That is an area that I think is going to be a hard floor I just think at this point in time we’re a little extended and then we start dropping again to find value.

CAC Technical Analysis

The CAC in Paris is pulling back after what had been a very strong Wednesday session. We are dancing around the 200-day EMA, which, of course, is very important, but if we can break above the 8,200-euro level, that could really send this market to the upside, perhaps going towards the 8,400-euro level.

I do like buying dips here and I think we’re going to stay somewhat sideways. Because of this, most trades are of a two-day variety.

MIB Technical Analysis

The MIB in Italy initially tried to rally as well, but then it turned right back around to show signs of hesitation. All things being equal, the 48,000 level is an area that we need to watch very closely for support.

With this being the case, you’ve got a scenario where traders are probably looking to pick up the MIB near the 48,000 level we’ll just have to wait and see. This is my favorite index of the 3. I am still bullish, I just recognize that you can’t go straight up in the air forever.

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