European Equity Analysis and NewsDAX The outlook for the DAX is somewhat fragile with the index trading at its lowest level in 5 months after last week’s breach through the July lows. Eyes will be on for a weekly close below the 12000, which could see the index make a test for the rising trendline support from the 2016 low. A break through the trendline opens the door for a move to 11800. However, the DAX may be offered some slight reprieve with the RSI indicator moving closer to the oversold area, suggesting there is scope for a possible retracement of the recent losses.
DAX Price Chart: Daily Time Frame (Nov 16 Sep 18) CAC 40 Similarly, with the DAX, the CAC 40 is also soft, however, the index remains supported by the summer lows situated at 5245. A firm break is needed for bears to extend a move towards the next value area at 5190-5100. RSI indicators however, suggest that there is a scope for a mild pullback and thus providing an opportunity for bears to reload short positions.