STOXX 50 : CONTINUATION DOUBLE BOTTOM!!!
- The market has been trading above a bullish trendline since November 2024 ; the long term trend is bullish.
- Last month, the market entered a consolidation phase following the establishment of a new all-time high above 5,100pts.
Investors have taken some of their profits out, which pulled the market back to its bullish trendline around 4,850pts/4,900pts.
Investors, seduced by the prospect of an incoming monetary easing cycle as well as a strong earning season in Europe, have then bought the dip.
This led the market to a strong bullish acceleration, ending a consolidation in a shape of a "double bottom".
The market is currently testing the neckline of this double bottom pattern while both EMA turned bullish.
The MACD indicator is also within its buying zone.
- In conclusion, this is seen as a really bullish configuration for the pan European index.
The double bottom pattern usually plays a "reversal" part in technical analysis, but can also be seen as a continuation pattern on rarer occasion, which is the case here.
Another bullish reaction over the neckline could quickly send prices much higher, above 5,100pts, 5,195pts, 5,280pts, 5,410pts and beyond.
Pierre Veyret, Technical Analyst at ActivTrades
The information provided does not constitute investment research. The material has no been prepared in accordance with the legal requirements designed to promote the independence of investment research and such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
- Last month, the market entered a consolidation phase following the establishment of a new all-time high above 5,100pts.
Investors have taken some of their profits out, which pulled the market back to its bullish trendline around 4,850pts/4,900pts.
Investors, seduced by the prospect of an incoming monetary easing cycle as well as a strong earning season in Europe, have then bought the dip.
This led the market to a strong bullish acceleration, ending a consolidation in a shape of a "double bottom".
The market is currently testing the neckline of this double bottom pattern while both EMA turned bullish.
The MACD indicator is also within its buying zone.
- In conclusion, this is seen as a really bullish configuration for the pan European index.
The double bottom pattern usually plays a "reversal" part in technical analysis, but can also be seen as a continuation pattern on rarer occasion, which is the case here.
Another bullish reaction over the neckline could quickly send prices much higher, above 5,100pts, 5,195pts, 5,280pts, 5,410pts and beyond.
Pierre Veyret, Technical Analyst at ActivTrades
The information provided does not constitute investment research. The material has no been prepared in accordance with the legal requirements designed to promote the independence of investment research and such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.