DAX, CAC, FTSE Talking Points:
- DAX 40 gains confidence above 14,000
- CAC 40 clings to 6,500 psychological support
- FTSE 100 flat as price action stalls
European Equities Recover From Recent Slump
The Dax 40 has managed to push through the 14,200 handle as European equities recovered a portion of recent losses. With US earning season underway, the NASDAQ 100 has stalled after disappointing Netflix earnings caused its share price to fall over 36% (at the time of writing). Although US Indices remained steady, both the German DAX and the French CAC to edge higher.
DAX Technical Analysis – Bulls aren’t ready to surrender just yet
Although the 14,000 – 14,400 range continues to provide strong levels of both support and resistance, the psychological level of 14,200 and the 23.6% Fibonacci level of 14,330 (2020 – 2021 move) has assisted in holding price action at bay.
If prices rise above 14,400, a break above Fibonacci and psychological level 14,600 could steer price action towards the 14,770 level, leaving the door open for bulls to reclaim 15,000.
DAX 40 Daily Chart
Chart prepared by Tammy Da Costa using TradingView
For the prominent trend to shift in favor of the bears, a break below 14,000 and the next psychological level of 13,800 could see the 13,688 Fibonacci level as the next support level with the 13,500 handle providing an additional hurdle for sellers.
CAC 40 Technical Analysis
The CAC 40 is finding it difficult to break the 6,500 level with both bulls and bears failing to gain traction. If prices hold above 6,500, a break above 6,650 could bring the psychological level of 6,800 into play with an aim to retest the 7,000 mark.
On the bearish side of the spectrum, a break below 6,400 may provide sellers with the opportunity to drive prices back towards the March low at 6,204. If both levels are broken, the next level of support rests at 6,000 with an increase in downward pressure paving the way for a retest of the March low at 5,751.
— Written by Tammy Da Costa, Analyst for DailyFX.com
Contact and follow Tammy on Twitter: @Tams707
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