The technical outlook for major European equity bourses continues to
improve and scope for further recovery in the medium-term. On the
CAC-40, the island reversal or abandoned baby candlestick pattern has
been followed by another gap higher, and implies risk on further gains
to 4,572 -- the 50.0% of May to July decline. On the Xetra-DAX, a
potential inverse head-&-shoulders pattern is noted, where neckline
comes in at 6,560 and break targets a measured move to 7,061. The 50.0%
of the May to July decline comes in at 6,615. FTSE-100 has broken its
May downtrend, with price action above the key 21-day moving average,
which has capped topside since late May. The 50% of the May to July
decline comes in at 5,724.