DAX 30, CAC 40 Technical Outlook: Looking Bullish
DAX 30 / CAC 40 Technical Highlights
- DAX 30 holding trend, eyes for record highs
- CAC 40 triangulating, poised to reach 200-day
DAX 30 holding trend, eyes for record highs
The DAX has been holding its own, trading on the lower side of a relatively smooth upward channel in place since the coronavirus panic low in March. A breakout above 12913 could soon have the gap-down in focus from February that kicked off the massive Q1 sell-off.
The gap runs from 13231 up to 13579, and is quickly followed by the record highs at 13795. It is not a stretch to think the market could be trading to new highs soon given the upward trend and general appetite for risk.
A breakdown out of the channel would be the first warning shot, but a break below the 200-day, and more importantly a break with force, would be a real cause for worry. In the event the DAX rolls over keep an eye on risk appetite in the U.S. as global leaders in the Nasdaq 100 could signal a broader risk-off event.
DAX Daily Chart (looking higher)
CAC 40 triangulating, poised to reach 200-day
The French benchmark remains the laggard, but will go the way of the DAX at the end of the day even it does so at a different pace. The wedging formation currently being built is seen as sending the CAC up towards the 200-day at 5289 in the near-term.
CAC 40 Daily Chart (triangulating)
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.