DAX, CAC and MIB Forecasts – European Indices Drift Lower to Kick Off the Week

German DAX Technical Analysis

The German DAX is a little bit negative during the early hours here on Monday, but really, at this point in time, I think this is more or less a grind lower, not necessarily a huge move. The 50-day EMA and 200-day EMA indicators are sitting right around the 24,000-euro level, which is an area that I think a lot of people pay close attention to.

The markets will continue to see a lot of questions asked about interest rates and of course, the energy supply in Europe. With more noise flaring up between the Americans and the Iranians over the weekend, that causes issues. I suspect we will probably revisit the 24,000-euro level and look for buyers to jump in.

CAC 40 Technical Analysis

The CAC 40 in Paris is dropping during the session a little bit more than we see in Germany. With the 20-day EMA way above and the 50 and 200-day EMAs following, it shows that there is a lot of resistance above.

The 7,900-euro level is an area that a lot of people will be watching as it was such strong support previously, and therefore, I think it makes a lot of sense that maybe we’ll be looking for some type of value in that area to take advantage of.

MIB Technical Analysis

The MIB in Italy continues to be the strongest of the three indices as financials are doing fairly well in Italy and that continues to drive the Italian index towards the 50,000-euro level. This is still my favorite index in Europe, and short-term pullbacks, I think, are buying opportunities.

The 48,500 level is where the gap that we recently formed happened, so a pullback to that area should, at least in theory, see a certain amount of technical support. After that you have 47,000 euros. If we can break 50,000 euros, that kicks off the next leg higher. This is by far my favorite of the three indices.

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