Summary:
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DE30 rebounds from key resistance
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FRA40 reacts to trend line
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UK100 confirms downward trend
The last few weeks were not the best for European stock markets. In today's analysis we are looking at the technical situation on DE30, FRA40 and UK100. Let's start with the German stock index DAX. Last week, the market tried to correct the recent strong declines. On Friday, the price rebounded from the key technical resistance located nearby 11,840 points. The red zone is a result of, among other things, the upper limit of 1:1 (Overbalance), as well as the earlier price reaction at this level. As long as the price is below the resistance zone, the downward trend persists. This level has been also defended so far today, confirming its importance. Currently, it is possible to move towards the last lows, where there is a support resulting from the measurement of 50% Fibonacci of the last bullish wave.
The DE30 bounces back from the resistance zone at 11,840 points. Source: xStation5
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Create account Try a demo Download mobile app Download mobile appThe FRA bounces off the trend line
When it comes to the French stock market index, the key support level has recently been defended. This is a wide 1:1 geometry, which has been strengthened by the measurement of 38.2% Fibonacci. However, the upward momentum is not strong.. The price managed to reach the trend line where the sellers appeared. If negative sentiment remains, it is possible to move back towards the support level at 5250 points. On the other hand, breaking below this level could open the way to a bigger decline. Under these circumstances, the June lows could be tested.
The French index has a problem with returning to an upward trend. Source: xStation5
UK100 broke the Overbalance structure
Recent drops in the UK100 have slowed down nearby the key support. The zone at 7075 points remains an important level that can be defended by buyers. This place results from the measurement of 50% of Fibonacci and the June lows. Last week, the correction managed to reach the resistance formed by the previously defeated lower limit of 1:1 structure. As long as the price is below the level of 7250 points, it is possible to fall toward the last week lows. In addition to that, the price has recently broken out of the bullish channel, which turns the probability into a bear market.
The UK100 index defends the key resistance, possible further decreases ahead. Source: xStation5
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