Weekly charts of Ichimoku Cloud show European stocks in an up-trend. Dow Jones Euro Stoxx 50 displays healthy separation above a green cloud. The signal is further strengthened by blue (Tenkan) holding above the red (Kijun) line for the last 6 months.
* Target calculation: 3200 + ( 3200 – 3000 ) = 3400
The DAX is consolidating below the psychological barrier of 10000, while displaying healthy separation above a green Ichimoku cloud. Breakout would confirm the recent buy signal where blue (Tenkan) crossed above the red (Kijun) line. Target for an advance would be 10500*. Reversal below 9700 is unlikely, but would warn of a correction.
* Target calculation: 9750 + ( 9750 – 9000 ) = 10500
The Footsie is struggling to break resistance at 6850/6880 and getting squeezed against the rising green cloud. Ichimoku still signals an up-trend but this is markedly weaker than the other two indices. Breakout would signal an advance to 7200*, but reversal below 6800 warns of another correction — likely to find support at the upper border of the cloud.
* Target calculation: 6800 + ( 6800 – 6400 ) = 7200