News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
DAX 30, CAC 40 Charts Flimsy, but Not Outright Bearish (Yet)

DAX 30, CAC 40 Charts Flimsy, but Not Outright Bearish (Yet)

Paul Robinson, Strategist

DAX 30 / CAC 40 Technical Highlights

  • DAX 30 bending its uptrend but not outright bearish yet
  • CAC 40 likely to lead on the downside should stocks slide

DAX 30 bending its uptrend but not outright bearish yet

Yesterday, the DAX snapped back nicely by nearly 3% as it found its footing around the 200-day MA. But can it maintain its footing now that it has broke away from the confines of the neat uptrend it built off the March panic low?

Breaking trend support doesn’t seal a market’s fate as having to reverse direction, but it can go to weaken its case. With the DAX lagging behind the stronger U.S. markets and falling further behind, should markets in the States roll over then we would likely see the downside accelerate in Europe.

But so far even though we are seeing some fracturing in the global risk trade, U.S. stocks remain strong and thus a boon for at least keeping the DAX/CAC from falling apart. Continue to keep an on the 200-day at 12207 on the downside and the resistance around 12950 and the corona-gap up to 13300.

DAX Daily Chart (trend weakening)

DAX daily chart

DAX Charts by TradingView

CAC 40 likely to lead on the downside should stocks slide

The CAC is in worse shape than the DAX, making it even more vulnerable should we see global risk sentiment sour. After breaking the March trend-line it is trying to hold onto support around 4800, but should that fail keep an eye on the area right around 4690, as it was a prior swing high turned support.

On the top-side a test of the underside of the March trend-line may be in order, followed by a developing trend-line off the February high. They are in relatively close proximity to one another over the 5k mark.

CAC 40 Daily Chart (weakening but still rangebound)

CAC daily chart

CAC Chart by TradingView

Want to learn more about trading the DAX? Check out ‘How to Trade the DAX’, and join me weekly for technical updates in the Indices and Commodities webinar.

Forex Trader Resources

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

---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.

DISCLOSURES