German DAX had 11 upward weekly candles from all 12 last candles. It means that upward movement lasts for a long time and we can expect some downward correction. The situation is similar at CAC40 and Euro Stoxx 50. However, at those indices, the situation can be even much clearer.
Each levels described in this analysis concerns Future market. You can find this indices at Windsor Brokers platform: GER30, FRA40, EU50.
CAC40 (French index grouping the 40 largest companies):
According to my last analysis demand broke above resistance at 5500 level (read more: Demand Won That Battle https://comparic.com/euro-stoxx-50-index-dax30-cac40-demand-won-battle/). However, this did not result in a quick upward movement away from this level. The bulls defended that level for the second part of the week.
Current, demand is aiming 5650 level. It is impossible to easy break above that level. Moreover, supply will wait there for an attack. That level was “in-game” many times between years 1999 – 2008 and each time it had influence at index’s direction.
Euro Stoxx 50 (index grouping 50 largest European companies from 11 countries in Europe):
Euro Stoxx 50 has the similar situation to CAC40. After successfully broke above resistance at 3640 the nearest target is 3770 level. This is the highest level from April 2015 and that level had also important role between years 1999 – 2008.
On Friday Euro Stoxx 50 finished at 3680 level. This is near the next level at 3770. Demand will have a trouble when index will test that level. It is possible even at the nearest week.
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DAX30 (German index grouping 30 biggest companies):
The completely different situation is at German DAX. The bulls achieved their historical high at 13500 level. Upward movement lasts for a long time and this is the only concern now.
Since the beginning of September 2017 DAX30 gained almost 1500 pts from 12065 level to 13470 level. It is more than +11% in two months. That period was free of downward corrections. There was only one side trend movement.
It doesn’t mean that declines will occur very soon. It is equally likely that the correction could occur next week or even at the beginning of 2018.