EUROPEAN RALLY COMES?

Specially in DAX and CAC40 we are expecting huge gains in the following days and weeks and try to build up some significant positions in both assets.

Yesterday both indices suffered severe losses and fear was back after two days of bullish rally. The investors turned pessimistic again for one day. The ZEW index report yesterday was disappointing fell to 8,6 far below an estimated 18.

• CAC40 – 0,85%
• DAX -1,22%

But all in all the scenario seems really promising for both benchmark indices against the Russian sanctions and fears and uncertainties in Ukraina.

Technically in DAX, yesterday was a consolidation day after two days of rebound, which is quite healthy technical pattern and today needs to come a conformation of the long rally. The index needs to close today over the 9,175 resistance level. If it is taken the area would be open up to 9,400 area.

The BFM Assets Team.