DAX, CAC and MIB Forecasts – European Indices Struggle into the Weekend

DAX Technical Analysis

The DAX in Germany has fallen pretty hard during the trading session on Friday, as it looks like we are racing towards the bottom again. Quite frankly, the DAX looks pretty miserable, and it now looks as if the 23,000 level will continue to be a major barrier.

If somehow, we could break above there, then obviously that would be a very bullish sign. But after seeing the movement on Friday and to a lesser extent on Thursday, I think it’s pretty obvious here that we have a situation where just any rallies are probably going to continue to be faded.

CAC Technical Analysis

The CAC in Paris is continuing to see downward pressure as well and, as I record this, we are threatening 7,700. If we break down below here, then we really could see this market fall perhaps down to the 7,500 level. Rallies at this juncture continue to see plenty of pressure; I am a seller of these rallies, especially if we get anywhere near 7,850.

MIB Technical Analysis

The MIB in Italy is now getting ready to break through the 200-day EMA or at least attempt it. With that being the case, I think you have to look at this through the prism of a market, just simply seeing if we can break below this area, because if we do, then it should, at least in theory, send this market much lower.

I do not like the idea of buying the MIB, although I am the first to admit it has been a little bit more resilient than some of the other indices. I still think that as long as we have concerns about energy in the European Union, all of these indices are going to struggle. This really is going to come down to whether or not they can get enough fuel.

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