DAX 40, CAC 40, FTSE 100 Talking Points:
- DAX 40[1] treads cautiously around psychological resistance
- CAC 40[2] confined to Fibonacci support
- FTSE 100[3] benefits from positive earnings but risk sentiment caps gains
DAX futures are trading marginally lower alongside the Europe’s STOXX 50[4] and the CAC (France 40)[5] with rising tensions between the US and China dampening sentiment.
As market participants continue to monitor China’s response to US speaker Nancy Pelosi’s visit to Taiwan, earnings season[6] has provided an additional catalyst for price action as investors search for additional signs of a recession.
DAX 40 Technical Analysis
With the current geopolitical environment (rising inflation, aggressive rate hikes, slowing growth and war) limiting equity gains, the German DAX 40 has remained resilient around a prominent range. With prices trading cautiously around 13,500, price action remains above the 200-week MA (moving average)[7] while the 23.6% Fibonacci level[8] (2011 – 2021 ATH) provides resistance at 13,620.
DAX 40 Weekly Chart
Chart prepared by Tammy Da Costa[9] using TradingView
If bears manage to drive prices below 13,300, the 78.6 Fib could provide support at 13,208 with a move lower leaving the door open for 13,000.
DAX 40 Daily Chart
Chart prepared by Tammy Da Costa[10] using TradingView
CAC 40 Technical Analysis
At the time of writing, the CAC 40 has fallen back towards 6,400 with the 76.4% Fib of the 2011 – 2022 move providing additional support at 6,275. If the bearish move gains traction, a break of 6,000 could provide an opportunity for a retest of the March low at 5,751.
CAC 40 Daily Chart
Chart prepared by Tammy Da Costa[11]
