DAX, CAC and MIB Forecasts – European Indices Looking Ready to Fight Back

DAX 40 Technical Analysis

The German DAX initially fell on Monday but has roared back to show signs of life as we are now back above the 24,000-euro level. This is a market that I think continues to be very important in general because it will lead to the European region at least as to where stocks go next. As the DAX goes, eventually so goes other indices. Rallying from here could open up the possibility of a move to the 24,500-euro level, possibly even the 25,000-euro level. It does look like we have quite a bit of support, near 23,700 euros.

CAC 40 Technical Analysis

The Parisian CAC has fallen a bit early in the session, but has turned around to show signs of life as we are forming a bit of a hammer. The hammer, of course, is a bullish sign, and now we can see this market going looking at the 200-day EMA above near the 8,068-euro level. The 50-day EMA sits just above there as well, and I think both of those make reasonable targets. We’ll just have to wait and see how that plays out. Bond yields are cooling off a little bit globally later in the day so that should help things.

MIB 40 Technical Analysis

The MIB in Italy has gapped lower but it is fighting its way back to the upside. We’ll see whether or not it can continue to do so, but to fill the gap, it needs to go looking at the 49,000 level. The 50-day EMA sits at the 47,300 level, with the 47,000-level underneath, offering support. I think ultimately this is a market that will eventually try to get back to the upside, but we had just gotten a little overdone. More of a grinding move to the upside will be easier to hang onto for the longer term.