DAX 30, FTSE 100, CAC 40 Price Forecast:
- The DAX 30[1] bounced off support near the 11,320 mark and reclaimed much of its recently lost ground
- The FTSE 100[2] is approaching the topside of its descending channel, can it break higher?
- The CAC 40[3] followed suit but has since encountered resistance around the 5,000 mark
DAX 30, FTSE 100, CAC 40 Forecasts for the Week Ahead
The US election has dominated traditional newswires this week and the remarkable ascent in the US indices has garnered significant media attention on the financial news side. As a result, simultaneous rallies in the DAX 30, FTSE 100 and CAC 40 have gone largely undiscussed despite their parabolic nature. Nevertheless, their significant recoveries have seen the European indices regain their footing after stumbling in mid-October amid weak earnings results and renewed lockdown measures in their respective countries.
DAX 30 Forecast
The DAX 30 was perhaps the weakest member of the group as we headed into election week, still reeling from the cataclysmic decline it suffered after SAP’s earnings disappointment.[4] With that in mind, the recovery enjoyed in November thus far has seen the German equity index regain much of the ground it lost in the month prior and resistance around the 12,647 level may be the next overhead barrier. Beyond that, secondary resistance may reside around the 12,960 level.
DAX 30 Price Chart: 1 – Hour Time Frame (September 2020 – November 2020)
Still, RSI readings suggest the DAX 30 has entered overbought territory on shorter timeframes and may be susceptible to consolidation in the coming days. Early areas of support may reside around the 12,340 level which marks the September swing low and has displayed influence on price
