FTSE 100, DAX 40, and CAC 40 Seek Stability After Sharp Declines
FTSE 100 Aims to Recover Recent Losses
The FTSE 100 is attempting to recover from last week’s losses, which were exacerbated by a sell-off due to European election turmoil. The UK blue-chip index is trading back above its 55-day simple moving average (SMA) at 8,173, with Thursday’s high of 8,220 in sight.
A decline through Friday’s low of 8,112 could target the 8,095 to 8,017 range, which includes early and mid-April highs and the late May low. For the bulls to regain control, a rise above Tuesday’s high of 8,266 is necessary.
DAX 40 Stabilizes Above Six-Week Low
The DAX 40 is attempting to hold above Friday’s low of 17,950, which was triggered by a sell-off following a significant shift to the right in European elections and the announcement of French snap legislative elections. Friday’s low nearly touched the 61.8% Fibonacci retracement of the April-to-May advance at 17,988.
If the index falls through this level, the mid-March low at 17,865 might be targeted next. Resistance is at the 50% retracement at 18,170, followed by the late April high at 18,240.
CAC 40 Attempts to Bounce Back from Multi-Month Low
Last week, the French CAC 40 index dropped over 5%, reaching 7,464 amid significant outflows due to upcoming snap legislative elections announced by President Emmanuel Macron. The 200-day simple moving average (SMA) at 7,619 is a short-term target but is likely to act as resistance.
Above it lies the 7,704 late January high. A fall through 7,464 could see the December peak at 7,653 offer support. Failing that, a drop toward the 7,281 January low may occur.
