DAX, FTSE and SMI Forecasts – European Indices Drift a Bit Lower on Thursday

DAX Technical Analysis

The German DAX has fallen pretty significantly during the trading session, but it does look like we are trying to defend the crucial 25,000-euro level. That’s an area that’s a large, round, psychologically significant figure and an area that has previously been resistance.

So, with that being the case, I think you have to look at this as a back-and-forth type of opportunity and I do believe that we are still very much in an uptrend, so I don’t see any reason to fight this. Higher rates during the day in both the United States and Germany have not helped, but the price action suggests that we are, in fact, trying to turn around and head towards the 25,400-euro level.

FTSE 100 Technical Analysis

The FTSE 100 fell rather significantly during the trading session here on Thursday. We are testing the 50-day EMA. It’ll be interesting to see whether or not it holds. If it does, it could end up being a nice buying opportunity.

However, if the FTSE 100 breaks down below the 50-day EMA, then we could see a challenge of the 10,200-level underneath, which has been massive support more than once.

SMI 20 Technical Analysis

The Swiss Market Index finds itself dropping. I suspect it’s got a little bit further to go, possibly down to the 13,250 level. I would be looking to buy some type of bounce here, but right now it looks like it’s just following the same trajectory of the other indices.

Remember, Switzerland is more of a defensive play typically, but there are some major financials and, of course, pharmaceuticals that are part of this play as well, so we’ll see. Ultimately, I think we have lower levels ahead of us and then a bounce from, like I said, somewhere around 13,300.

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