After opening with a corrective gap on the Eurostoxx 50, after closing at 4,885.74 points, today we have witnessed a strong buying presence. The all-time high of 4,564.03 points, set in 2008, was surpassed on January 12 after a technical rebound following the Epiphany holiday. Since last Thursday, the index seems to have consolidated a range between the new highs and 4,866.39 points, although attempts to break higher have been unsuccessful at this opening characterized by an uptrend without significant volume.
In the last few hours, we have seen a new rising high in the uptrend, confirming the dominance remains in the hands of buyers and their quest to reach 5,000 points. This level is crucial, as it has been a turning point in January 2022 and 2023, and this time it has managed to overcome the barrier of the 2008 high. If this advance is consolidated, it could become the new target to beat.
However, it is important to note the divergence signals. The MACD indicates a bearish divergence with no volume at the moment, which could be slowing down the upward momentum or signaling a possible exhaustion. On the other hand, the RSI is trending downwards, currently around 50% being its average 59.35% at the moment, suggesting a lack of trend strength and a possible sideways intraday sideways, which could give room for other types of trades.
Ion Jauregui - AT Analyst
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered 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.
In the last few hours, we have seen a new rising high in the uptrend, confirming the dominance remains in the hands of buyers and their quest to reach 5,000 points. This level is crucial, as it has been a turning point in January 2022 and 2023, and this time it has managed to overcome the barrier of the 2008 high. If this advance is consolidated, it could become the new target to beat.
However, it is important to note the divergence signals. The MACD indicates a bearish divergence with no volume at the moment, which could be slowing down the upward momentum or signaling a possible exhaustion. On the other hand, the RSI is trending downwards, currently around 50% being its average 59.35% at the moment, suggesting a lack of trend strength and a possible sideways intraday sideways, which could give room for other types of trades.
Ion Jauregui - AT Analyst
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered 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.