ACTIVTRADES:EURO50   EuroStoxx 50 Cash Index
- 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

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