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Good technical prospects for European indices in 2021


A very busy year ends with high volatility in the world indexes. North American indices say goodbye to 2020 at all-time highs while in Europe only the German Dax is trading near the all-time highs. Indices such as the Ibex 35, the CAC or the selective Italian are still very far from the highs, although in the short term we could see an extension of the recovery that began at the beginning of November.

Technical analysis

He IBEX 35 The year ends with a 15.45% drop and that in the last two months the Spanish index has revalued close to 30%. In the middle of last November the selective managed to climb above the average of 200 sessions. After exceeding the key level of 8,000 points we are seeing a consolidation of levels. The correction to the upward momentum at the beginning of November has not reached the 38.2% Fibonacci retracement, which is undoubtedly a show of force that invites us to think about a next attack at the key level it presents at 8,322 points. Exceeding this price level seems likely in the early stages of 2021, which would undoubtedly be what would trigger an extension of the gains to the 8,600 or even 9,000 point level. The support that we will not lose sight of is at 7,663 points, the minimum of December 21. Beware that the abandonment of this price level would complicate its short-term technical prospects.

Let us advise you on your investments. Try Trader Watch for free for 7 days. In the last year we accumulated a revaluation of 334.76%.

He DAX 30 2020 ends with rises of 3.55% and that in mid-March it reached 40%. The recovery since then has been spectacular, which has led it to drill, in the closing stages of the year, the all-time highs of 13,824 points. It seems very likely that in the first bars of 2021 the selective could reach the level of 14,000-14,200 points, which would leave its price rising free with a clear path so that we can end up seeing an attack at the level of 15,000 points, prices that it could reach in the first half of next year.

He CAC 40 7.14% is left at the end of the year. However, the French index started 2020 at the highs of the last thirteen years. It seemed that it could end up exceeding the 2007 highs that it drew at 6,170 points, but the outbreak of the pandemic took it to 2013 levels. The recovery from the March lows has been very important, specifically 55%, although it is still 8% below the highs of 2020. The technical prospects for the first few bars of the year are good and we are seeing how the resistance of 5,616 points is being pierced, which would make us think of an attack at the level of 6,100 points.

He Euro Stoxx 50 the year ended with falls of 5.14%. The selective is moving more than 50% below its all-time highs at the beginning of 2000. However, its technical prospects are good for 2021. The overcoming of the resistance of 3,400 points and its subsequent support shows us the current strength of the purchases and the high possibilities so that, in the first quarter of 2021, we may end up seeing an attack at the level of 3,868 points, the highest at the beginning of 2020.


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