The major European indices end the day with solid gains. Italy’s FTSE MIB is leading the charge. The German DAX, the French CAC and the Spanish Ibex also all rose by 1.4% or more. Major indexes also closed higher for the week despite the ECB’s 75 basis point hike.
Looking at closing levels:
- The German DAX rose 183.89 points or 1.43%
- The French CAC increased by 6.43 points or 1.41%
- Britain’s FTSE 100 rose 9.03 points or 1.23%
- The Spanish Ibex gained 116.3 points or 1.47%
- The Italian FTSE MIB rose 416 points or 1.9%
For the trading week, today’s gains erased losses earlier in the week
- German DAX +0.29%
- CAC France +0.73%
- UK FTSE 100 +0.96%
- Spanish ibex +1.27%
- Italian FTSE MIB +0.7%
Looking at the hourly chart of the German DAX below, today’s price opened and broke higher during the 1st hour of trading and broke above its 100 hourly moving average (blue line in the chart below). below) to test the 38.2% retracement of the move down from the August 16 high. This retracement level comes in at 13117.09. Today’s high price reached 13121.13 just above this level, but pulled back on the close.
In the new trading week next week, that 38.2% retracement would need to be broken above to give buyers more confidence with the 200 hourly moving average at 13236.07 as the next upside target to reach and break through.