The earnings season got off to a good start last week with the figures of several large tech companies. Four of the ‘Magnificent Seven’ have now published their results to mixed reviews.
We also see this picture on the Dutch market, where good and bad figures alternate. On balance, the technical picture of the Dutch stock market remains in reasonable order, because after the short decline in mid-April, a large part of the correction has already been reversed.
The picture on the European stock exchanges is also still good: in many cases there is only a breathing space after the strong rise of the previous months. I will shortly discuss the technical picture of the European stock market average, the Euro Stoxx 50 index.
Worldwide, the correction seemed to take on somewhat larger proportions, but an important safety net has now been achieved for many indices. We also clearly see this in the MSCI World index, which I will look at further below. I start with a technical look at the Dutch stock exchange.
Breathing space at the AEX index
Sentiment on the Amsterdam stock exchange remains positive. The recent correction of the Dutch stock market takes place within the rising trend. As long as the price manages to remain above the previous top, the technical picture looks reasonably positive.
The pattern of higher highs and lows is still intact, indicating that there remains strong purchasing power for Dutch shares. As long as the AEX manages to remain above the support zone of the old top from 2021, we maintain our positive view of the index.
Only after a drop below 829 points, where the AEX can meet the 200-day line, will the picture weaken somewhat. For the time being, the net focus remains upward and we are sticking to our initial price target of 900 points.
Strong picture for Euro Stoxx 50 index
The European stock market average is taking a temporary breather within the strongly rising trend. As long as the price manages to remain above the previous top, the technical picture looks reasonably positive.
The Euro Stoxx 50 is taking a breather after a period of sharply rising prices, in which the index has run away from the old highs of 2021. The significantly higher price top that has recently been formed indicates eagerness among investors who do not want to miss the boat.
The Euro Stoxx 50 index can continue its way up towards the all-time high from 2000 around 5,522 points.
Healthy correction in the MSCI World index
The correction in the global MSCI World index has been strong in recent weeks, but has not yet led to real technical damage. After forming a higher price top, the index has fallen back to the old highs of 2021 and 2022, which now serve as new support.
For the time being, there is a healthy pullback to the former breakout level, from where a new upward trend can be started. The formation of a new higher bottom above this level will confirm the previous improvements.
To keep the positive picture intact, the support zone must hold around 3,250 points. Below the technical picture will weaken somewhat. We use a long-term price target of 4,000 points.
