DAX, FTSE and CAC Forecasts – European Area Slightly Soft on Wednesday

DAX 40 Technical Analysis

The DAX in Germany has found itself to be a little bit negative during the trading session here on Wednesday, but at this point in time, it’s probably worth noting that the market will remain very choppy and noisy. And we are sitting just above the major area of potential support that is right around the 24,900 level. The 25,000 level in and of itself, of course, will give you a little bit of support as well due to the psychology of the number. I am looking for a bounce from here.

FTSE 100 Technical Analysis

The FTSE 100 in London is hanging around the 50-day EMA, and really, if you look far enough, you can make an argument for some type of larger triangle trying to play out. Whether or not that ends up being a major factor, we’ll have to wait and see, but it certainly looks like a market that’s compressing. Ultimately, the triangle is just a little bit more ascending than symmetrical. So, if we can break above the 10,500 level, this is a market that I think could go quite a bit higher.

CAC 40 Technical Analysis

The CAC in Paris initially pulled back just a bit, only to turn around and show signs of life. All things being equal, this is a market that I think continues to find buyers on dips and will continue to look for value as traders like the idea of buying these dips with the 50-day EMA sitting just above the 8,100-euro level. The 8,300-euro level is a short-term target followed by 8,400 euro.

If you’d like to know more about technical analysis and how traders use it, please visit our educational area.