Quarterly Outlook
Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges
Althea Spinozzi
Head of Fixed Income Strategy
You can access all of our platforms from a single Saxo account.
Technical Update - EuroStoxx50 and DAX reversal patterns signal trouble ahead: Key levels to watch
2 minutes to read
Kim Cramer Larsson
Technical Analyst, Saxo Bank
Summary: GER40 and EU50 CFD's included in the analysis
EuroStoxx50 formed a bearish engulfing top and reversal candle yesterday, erasing the previous three days of gains.
Despite RSI not indicating uptrend exhaustion—there is no divergence on the values—the top and reversal pattern is fairly strong.
To invalidate this pattern and for EuroStoxx50 to resume and extend its bullish move, a daily close above yesterday’s peak at 4,987 is required.
EuroStoxx50 is now trading below support at around 4,907 and is likely to test key strong support at around 4,812 shortly.
The 200 daily Moving Average, currently around that level, will add to the support strength.
A daily close below 4,800 could lead to further selling, with no strong support until around 4,703.
Despite RSI not indicating uptrend exhaustion—there is no divergence on the values—the top and reversal pattern is fairly strong.
To invalidate this pattern and for EuroStoxx50 to resume and extend its bullish move, a daily close above yesterday’s peak at 4,987 is required.
EuroStoxx50 is now trading below support at around 4,907 and is likely to test key strong support at around 4,812 shortly.
The 200 daily Moving Average, currently around that level, will add to the support strength.
A daily close below 4,800 could lead to further selling, with no strong support until around 4,703.
EU50 CFD Levels:
Support at around 4,810, with potential to dip to the 0.382 retracement at 4,789.
Additional support at around 4,742.
To resume the bullish trend, a daily close above 4,987 is required.
Support at around 4,810, with potential to dip to the 0.382 retracement at 4,789.
Additional support at around 4,742.
To resume the bullish trend, a daily close above 4,987 is required.
The DAX Index formed yesterday a bearish engulfing top and reversal pattern, erasing the previous four days of gains to close yesterday on the support at around 18,748.
However, the Index gapped lower at the opening and could see further selling in the coming days and weeks towards the strong support around 18,236–18,183 and 17,884.
Despite RSI still showing positive sentiment and no sign of divergence, the Index is likely to have topped out. For the DAX to resume and extend the bullish move, a daily close above 18,991 is required. The first indication of that scenario playing out would be if the DAX can close back above 18,748.
However, the Index gapped lower at the opening and could see further selling in the coming days and weeks towards the strong support around 18,236–18,183 and 17,884.
Despite RSI still showing positive sentiment and no sign of divergence, the Index is likely to have topped out. For the DAX to resume and extend the bullish move, a daily close above 18,991 is required. The first indication of that scenario playing out would be if the DAX can close back above 18,748.
GER40 CFD Levels:
Support at around 18,210 and 17,948.
A daily close above 18,991 will see the bullish trend resume.
Follow me for more on SaxoTrader platforms, home.saxo, my YouTube channel Cramer's Corner YouTube where you can subscribe and get a message when new updates, and X (Twitter): Cramers_Corner
Latest Market Insights
Quarterly Outlook
-
-
Quarterly Outlook
Equity Outlook: Will lower rates lift all boats in equities?
Peter Garnry
Chief Investment Strategist
After a period of historically high equity index concentration driven by the 'Magnificent Seven' sto... -
Quarterly Outlook
FX Outlook: USD in limbo amid political and policy jitters
Charu Chanana
Chief Investment Strategist
As we enter the final quarter of 2024, currency markets are set for heightened turbulence due to US ... -
Quarterly Outlook
Macro Outlook: The US rate cut cycle has begun
Peter Garnry
Chief Investment Strategist
The Fed started the US rate cut cycle in Q3 and in this macro outlook we will explore how the rate c... -
Quarterly Outlook
Commodity Outlook: Gold and silver continue to shine bright
Ole Hansen
Head of Commodity Strategy
-
Quarterly Outlook
FX: Risk-on currencies to surge against havens
Charu Chanana
Chief Investment Strategist
Explore the outlook for USD, AUD, NZD, and EM carry trades as risk-on currencies are set to outperfo... -
Quarterly Outlook
Equities: Are we blowing bubbles again
Peter Garnry
Chief Investment Strategist
Explore key trends and opportunities in European equities and electrification theme as market dynami... -
Quarterly Outlook
Macro: Sandcastle economics
Peter Garnry
Chief Investment Strategist
Explore the "two-lane economy," European equities, energy commodities, and the impact of US fiscal p... -
Quarterly Outlook
Bonds: What to do until inflation stabilises
Althea Spinozzi
Head of Fixed Income Strategy
Discover strategies for managing bonds as US and European yields remain rangebound due to uncertain ... -
Quarterly Outlook
Commodities: Energy and grains in focus as metals pause
Ole Hansen
Head of Commodity Strategy
Energy and grains to shine as metals pause. Discover key trends and market drivers for commodities i...