DAX, FTSE and MIB Forecasts – European Indices Look for Next Catalyst

DAX Technical Analysis

The DAX in Germany is somewhat stagnant during the early hours here on Wednesday as we are just simply hanging around. Ultimately, this is a market where I think we are just waiting to see how things play out in the Middle East and what that is going to do to the energy supply. It does look like there are good signs coming out of the Middle East, so I think that helped.

But given enough time, I also recognize that we will start to focus on other things sooner or later, such as potential stagflation. Short-term pullbacks open up the possibility of a buying opportunity near the 50-day EMA, perhaps the 23,400 level. To the upside, if we can break above the 24,250 level, then it is possible that the market could go looking at 25,000.

FTSE 100 Technical Analysis

The FTSE 100 is pretty stagnant as well as we just kind of hang out and try to determine whether or not we have the ability to pick up the necessary momentum to continue towards the 10,800 level. Market participants will continue to look at this as a buy on the dip scenario from what I can see, with the 10,500 level being a short-term floor in the market.

To the upside, the market could possibly go looking towards the 11,000 level, but I think it would take a certain amount of time to get there. In the meantime, it looks like we are just in the process of forming some type of flagging pattern.

MIB Technical Analysis

The MIB in Italy looks as if it is trying to stretch even further, but this is definitely an overbought market. I would like to see some type of pullback towards the 47,000 level and a bounce to get involved. MIB typically is driven by financials; that is not going to be any different this time.

It is in a nice uptrend, but a jump of about 6,500 euros in just about two weeks or so, two and a half weeks, probably a bit overdone. Looking for a little bit of a pullback and then a bounce that I can take advantage of. I have no interest whatsoever in shorting.

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