DAX 40, CAC 40 and FTSE 100 Forecast – Euro Area Indices Sluggish, While UK Shows Buying

DAX Technical Analysis

The DAX has found itself a little bit negative during early trading on Tuesday but is starting to find a little bit of support near the 50-day EMA. By doing so, this is a market that I think is just simply killing time until we can break above the crucial 25,000 level.

I do think eventually we rally, but with most developed indices, it’s just a grind at the moment. There really isn’t much out there to drive the market higher, as there are concerns about tariffs and concerns about global trade in general.

That being said, the German government is throwing a ton of money into the economy this year and a few years after, and therefore the stimulus should continue to drive German stocks higher. So, I like the idea of buying dips.

CAC Technical Analysis

The CAC in Paris has dropped to test the crucial 8,275 level but has bounced from there. I think you’ve got an opportunity for this market to go higher, perhaps reaching 8,400 fairly quickly.

If Europe in general starts to rally, then it does make a certain amount of sense that Paris will follow. Watch the luxury brands; that will be you tell here with the CAC being so heavily influenced by higher-end brands.

FTSE 100 Technical Analysis

The FTSE 100 actually is positive during the session. It is threatening the 10,500 level and it is trying to break out to the upside even further.

It has run into a little bit of resistance above there, but there’s literally nothing on this chart that tells me that I should be thinking short. I like buying dips. I do think we continue to blow straight up in the air through the resistance, given enough time, and I have a target at the moment of 10,800.