DAX, CAC and MIB Forecasts – European Indices Looking for Support on Monday

DAX Technical Analysis

The DAX in Germany tried a rally to kick off the trading week but has turned around to show signs of hesitation. The 25,000 level is a major and important level that people will be watching very closely.

Looking at this chart, you can see that the 25,000 level is an area that I think has seen a lot of interest, and of course, it should go forward. After all, it’s a major headline number.

That being said, if the market were to turn around and rally from here, we could go looking to the 25,400 level. Breaking that level allows the market to go much higher. Anything below 25,000, I believe, ends up being a little bit of a buy on the dip type of situation. Probably would have to step back for a day or two to find the entry level.

CAC Technical Analysis

The CAC in Paris has risen slightly during the trading session on Monday, but it gave back those gains pretty quickly. I think this is a market that will continue to look at the 50-day EMA and the 200-day EMA indicators underneath as support.

I do think there are a lot of people out there willing to buy the CAC, but I also recognize that we’re pretty much in a consolidation range, and I think it’s very difficult to get too overly aggressive because it’s a short-term trading environment.

MIB Technical Analysis

The MIB in Italy is very sideways on Monday, but it is close to the recent highs, and I think we could break above the 50,300 level. And once we do, the market goes much higher.

Short-term pullbacks, I think open up the possibility of buying opportunities. The MIB of course is driven by financials and others, but a huge financial sector. So pay attention to bond yields. If they remain healthy, that should continue to help some of the bigger players in Italy.