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​​​FTSE 100, DAX 40 dragged down by CAC 40 amid French political stalemate

​​​Outlook on FTSE 100, DAX 40 and CAC 40 as France faces political turmoil.

DAX 40 Source: Adobe images

​​​FTSE 100 slips alongside European indices

​​Last week’s FTSE 100 rejection by its May-to-July downtrend line at 8,287 has led to the late May low at 8,138 being revisited, a fall through which would open the way for the major 8,115-to-8,106 June-to-July lows to be retested.

​Minor resistance is seen between the 4 to 8 July lows at 8,177 to 8,181.

FTSE 100 chart Source: IT-Finance.com
FTSE 100 chart Source: IT-Finance.com

​DAX 40 rapidly comes off its two-week high

​The DAX 40's rally to Friday’s 18,665 high has been followed by a sharp decline to Tuesday’s low at 18,211. Below it beckons the early July low at 18,023 and the June trough at 17,950.

​Minor resistance is seen between the 24 and 26 June highs at 18,367-to-18,357 and along the 55-day simple moving average (SMA) at 18,408.

​Only a currently unexpected advance through the May-to-July downtrend line at 18,658 and above last week’s high at 18,665 would push the 18,786 to 18,935 May-to-June peaks to the fore.

DAX 40 chart Source: IT-Finance.com

​CAC 40 falls sharply as political turmoil grips the country

​The French CAC 40, which on Monday morning saw a brief relief rally to 7,742 as the left-wing and not the far right alliance won a relative majority in France’s legislative elections, dropped by over 2% since. The index is fast approaching its mid-to-late-June lows at 7,464-to-7,455 which may soon give way.

​A fall through the 7,455 June low could provoke a slide towards the January low at 7,281 and perhaps even lead to the 7,000 region being revisited.

​Resistance is far off along the 200-day SMA at 7,654.

CAC 40 chart Source: IT-Finance.com
CAC 40 chart Source: IT-Finance.com

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