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The DAX capped out at 9430 at the end of November – clearly filling the gap in price action that occured during the weekend of 22-25 November. The area around 9230 may now serve as a resistance to the topside in the near term.
Any fall below the recent lows of 9030 would bring the 50 DMA into sight, with support coming in just below the 9000 metric.
The CAC stopped short of the 50% retracement from June 2007 highs to March 2009 lows, and has now imparted something of a bearish weekly candle with support currently being found at 4100. Any decline below this will bring the rising support from June 2012 lows and the 50-day moving average into play. The key resistance on the topside is 4325, which will need to be breached convincingly if we are to see further gains in the French index.