FTSE 100, AEX 25 and IBEX 35 – Euro Region Indices Look Primed to Move

FTSE 100 Technical Analysis

The FTSE 100 is strong during the early hours on Tuesday as we are hanging around the 10,200 level. This is a market that has been bullish for a while, and it looks a bit like a bullish flag is forming. If we can continue to rally from here about 50 points or so, it is very likely that the FTSE 100 will continue to lead the rest of the European region higher.

The FTSE 100 has been a strong performer for quite some time, and I do believe that the 10,000 level, at least in the short term, should be your floor.

Amsterdam 25 Technical Analysis

The Amsterdam 25 continues to be very noisy, but I think you have a scenario here where traders are looking at the psychologically important 1,000 level as an area that they are concerned about. It is a little bit like a consolidation phase that is using that as fair value.

We will just have to see if that holds. 50-day EMA is all the way down at the 970 level and rising. I think that is your pseudo trendline that you are following as Amsterdam should follow right along with the rest of the EU, especially with the EU-India trade deal could trigger a secondary rally in EU exporters which of course will have some influence on Amsterdam like it would any other city in that region.

IBEX 35 Technical Analysis

The Spanish IBEX 35 index looks like it is ready to break out to the upside yet again with the 17,750 area being a bit of resistance. If we can make a fresh new high, basically 17,800, it opens up the move to 18,000.

This is a very well-performing index over the last several months and it continues to ride the 50-day EMA as a trendline. We are pretty far from there but notice that the last couple of weeks have seen a nice pullback only to turn around and rally again. All things being equal, this is a market that I think hot money will continue to flow into, especially with the ECB on a stable path. It gives traders a little bit of confidence throwing money into risk appetite and risk appetite Europe means some of the smaller indices like Spain.

Overall, the European region looks as if the stock indices are ready to move to the upside soon, as we are near resistance points, and have shown resilience over the last couple of weeks.