Getting back to Europe Region. We will analyze their recent behaviours and somewhat forecast what may happen. DAX (Germany) is still waiting to release their Q1 2012 GDP numbers, while UK contracted 0.2% this Q1 2012. A double-dip Recession since 1970. Although we didn’t feel the pressure as FTSE still gained 0.50% for the night, Germany GDP will be the major direction-go-getter where Europe will certainly be. Overall, All 3 major index are still in Medium Term Uptrend, and Short Term Downtrend biased.
Germany contracted 0.2% last Q4 2011,and pressure is on this result for Q1 2012 GDP. If GDP results to be good, there is a good opportunity on BUY near 6400, as DAX is trading near the farther side of the support. And it already corrected 10% from the peak. Once it didn’t hold the support at 6400. A strong double dip may happen.
Medium Term: Uptrend
Short Term: Downtrend
France grew 0.2% last Q4 2011, they are also visible in their GDP Growth. Same as Germany and UK, these 3 go by tandem, if one falls from the cliff, others will surely follow. A good trading BUY near 3000 also if economy gives good result. And may have double dip if didn’t hold.
Medium Term: Uptrend
Short Term: Downtrend
UK contracted 0.2% for consecutive 2 quarters. Making this country in Recession, I hate to say it but in this type of Economic data, a 3rd quarter contraction usually extends. We will surely know in the coming months where things will go. Same as DAX and CAC, if one breaks down below their important Medium Term Uptrend support, these 3 moves in tandem. Its like 3 different Index, but charts seems to be equivalent to each other. A good trading BUY at 5600 if you are confident that UK will grow, and will double dip once it falls below 5600
Medium Term: Uptrend
Short Term: Downtrend
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