DAX 30, CAC 40 Technical Analysis: On Diverging Paths

DAX 30, CAC 40 Technical Analysis: On Diverging Paths

• None weakening, but not doing so in a meaningful manner DAX weakening, but not doing so in a meaningful manner The DAX has been weakening, but not in a super meaningful way. That could change as U.S. stocks look vulnerable to a larger pullback. But as it stands now the price action is relatively benign. If the DAX can continue to hold here a rally to the prior high at 14169 and higher may soon develop. Continued weakness will have support in focus around the 13446 area, with the March trend-line not too far beneath there to potentially help keep things pointed higher. The 200-day MA is also starting to align with that trend-line, so a decline to that point would be considered an important test. Of the two big European indices, the CAC is the more interesting one here as it holds up extremely well beneath 5800. It has spent the past week+ consolidating after breaking out to a new post-corona high. There is a top-side channel line running over the top of the last three peaks since …
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