Europe: Dax faces selling pressure while UK and Italy rally

Germany’s DAX found support at 7500 and is again testing long-term resistance at 8000 (shown on the quarterly chart below). 13-Week Twiggs Momentum and Twiggs Money Flow both display bearish divergences, warning of selling pressure. Reversal below 7500 remains likely and would signal a correction to test the rising trendline.
DAX Index

* Target calculation: 7500 – ( 8000 – 7500 ) = 7000

Italy’s MIB index found support at 15000. Follow-through above 17000 would indicate a primary advance and penetration of resistance at 18000 would confirm the primary up-trend signaled earlier by bullish divergence on 13-week Twiggs Momentum.
FTSE MIB Index

* Target calculation: 18 + ( 18 – 15 ) = 21

The FTSE 100 is testing resistance at 6500. Rising 13-week Twiggs Money Flow and Twiggs Momentum both suggest that breakout is likely — which would signal an advance to 7000.
FTSE 100 Index

* Target calculation: 6500 + ( 6500 – 6000 ) = 7000