Euro stoxx is approaching our first resistance at 3262.6(horizontal swing high resistance, 61.8% & 50%Fibonacci retracement, 100% Fibonacci extension ) where a strong drop might occur below this level pushing price down to our major support at 3134.7 (38.2% Fibonacci retracement , Horizontal overlap support, 61.8% Fibonacci extension )
Stochastic (55,5,3) is...
Euro Stoxx 50 is approaching our first resistance at 3261.7(horizontal overlap resistance, 50% Fibonacci retracement ,100% Fibonacci extension ) where a strong drop might occur below this level pushing price down to our major support at 3090 (50% Fibonacci retracement , horizontal overlap support)
Stochastic (89,5,3) is also approaching resistance where we might...
SX5E is approaching its resistance at 3260 (100% Fibonacci extension, 50% & 38.2% Fibonacci retracement, horizontal overlap resistance) where it could potentially fall to its support at 3132 (61.8% Fibonacci extension, horizontal swing low support).
Stochastic (55, 5, 3) is approaching resistance at 97% where it could potentially reverse.
EuroStoxx below 3410/05 risks a slide to the May low at 3385/80. A break below the 50% Fibonacci at 3374 targets 3366 & 3359/55.
Holding 3410/05 allows a recovery to 3428/30 with strong resistance at 3439/42. Shorts need stops above 3450. A break higher meets strong resistance at 3461/64. Shorts need stops above 3470.
This is further to my earlier post on ESA: Make or break it. Since then the ESA has broken down from the continuation wedge and appears to have found support on the 200-DMA which coincides with a 78.6% retracement. Given the heavy data dump coming out this week and the US heading in earnings season, I would play it on the safe side to close shorts and look for...
The SX5E is a much narrower index relative to the Stoxx 600 (check out my earlier post) but you get the same bearish conclusion. The SX5E is constrained by a major downtrend line marked by the 2007 and 2015 market tops, it is building somewhat of a expanding megaphone pattern over the last year and a massive MACD divergence from the price action. The last major...
I keep hearing how Europe is a better investment relative to the US but a quick look at the FY1! chart fails to convince me so. The price action is hitting a major resistance marked by market tops in 2007 and 2015, price action is forming a bearish expanding megaphone pattern with MACD divergence. The bear in me is growling to get out.
Going long on ''STOXX 50''
If prices break through our key level at 3475.0, we could see a bullish run up to highs of 3575.0/3625.0.
A solid break through our key level, will indicate to me that our targets aren't far-fetched and actually could be attained. Also we could get an opportunity to short this for the equivalent appreciation, which is really good!
Very good high probability setup for change in direction. Strong level of support. RSI oversold with divergence and last leg sign of a retracement. Bears couldn't break lower that lever last week. If Italian election ends well and Merkel do her job for Germany things might go pretty well.Relatively cheaper equities in EU makes me think 2018 EU may overperform US...
This could be a large WXY flat correction.
We are in the last Y wave down.
It could be a hefty gain.
Target at 2655 level is the minimum.
I like European indexes clean charts and ideal touch points as you could see in the EURO Stoxx 50 here.
We can see a clear upward channel here. Unless we see a breakout, I expect further bullishness. We may see some sideways movement first as there may be some resistance from the recently completed triangle. If this is broken, rapid increases are possible.
Concerns surrounding Europe's banking sector suddenly seemed to have vanished away from the markets. However, Stoxx 600 index chart clearly shows the larger falling trend line is intact and a bullish break from a smaller symmetrical triangle failed.
Caution is advised at least as long as the larger falling trend line isn't breached.
- Failed and rejected off the UTL of February low
- Price converging in a triangle wedge
- RSI is oversold but not diverging to support a strong rebound
- Target for 2840 seems possible if it broke out of the wedge
- If previous fractal via the candles and RSI serves right, it may well break above 3020 and trade higher
- It remains a strong IF but it looks entirely possible as longer TF will post a strong rebound and bullish candles
- With that in mind, the bias is not to short or fade it until a much clearer signal is available - bulls seems adamant to want higher prices...