DAX 30, CAC 40, FTSE 100 Price Outlooks:
- The DAX 30[1] has failed to surpass the September high and could pullback if the October peak is broken
- The CAC 40[2] enjoys open air but gains have slowed and support has come under fire
- Despite a plethora of fundamental factors, the FTSE 100[3] enjoys an encouraging technical outlook
DAX 30, CAC 40, FTSE 100 Forecasts for the Week Ahead
European indices enjoyed massive gains in November that helped them recoup losses suffered during the coronavirus pandemic. After surging higher in quick fashion, the DAX 30 and CAC 40 have entered into a period of consolidation as they await catalysts for the their next move.
While the longer-term trend of the indices remains higher in my view, the German and French equity indices have seen gains slow and support tested which has left them vulnerable to deeper pullbacks before continuing higher.
DAX 30 Price Forecast
The DAX 30 has had trouble breaking its September high – around 13,460 – and has retreated to support near 13,185 as a result. The German equity index is seemingly caught between its September high and October high as it awaits a catalyst to continue in either direction. Recent consolidation has also created an ascending channel which could also look to influence price in the shorter-term.
DAX 30 Price Chart: 4 - Hour Time Frame (September 2020 – December 2020)
How to Trade Dax 30: Trading Strategies and Tips[4]
Since the longer-term trend is higher, it seems the DAX 30 is tilted upwards for the time being. Still, a lack of progress to the topside should not go unnoticed. A break beneath the October high could open the door to deeper consolidation which might allow
