In this update we review the recent price action in the Euro Stoxx 50 nd identify the next high probability trading strategy and price objectives to target
Trade Idea: Selling EU50
Reasoning: Looking for selloff to be extended here, breaking through support.
Entry Level: 3652
Take Profit Level: 3439
Stop Loss: 3689
Risk/Reward: 5.76R
Disclaimer – Signal Centre. Please be reminded – you alone are responsible for your trading – both gains and losses. There is a very high degree of risk involved in...
As our first post it is essential to publish our longer term trend channel work as it provides the larger backdrop to our more detailed and shorter term work that we will be publishing in due course.
Starting with the Eurostoxx 50 Index (SX5E) we saw a 19% rally in as many trading days off the March lows only to run into resistance and the 3 month downtrend...
With the Ukraines Presidents words on the weekend talking about WW3, I believe the European markets will drop this week so I put a Sell Order in at 3893 with my SL at 4050.
I'll keep an eye on it but I think there will be a lot of volatility this week on all markets.
Stay safe.
Heiko
The STOXX has arguably a complete 5 waves structure, rebounce of 200-300 points from here is likely if intraday low holds.
Target >4200
Stop <3890.
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EW interpretation:
Off the top of Feb, what I regarded as azure wave (iv) of one degree higher, we can observe 5 waves structure.
The last wave v in purple is quite extended, but given that wave iii reached 1.236...
SX5E looks like it will reverse, and the potential bullish reversal area is the 4012.
Then the price might make a potential pullback at the 4067.85 area and then push on to reach 4200. There is a serious disinterest in bears for the 3880.
The violation of the 3.800 level could occur in the case of confirmation of the war event (Russia-Ukraina). There would therefore be a further sell-off phase that would lead to the implementation of a first capitulation that would lead the Eurostoxx50 to move in the 3600-3200 range. The low end of this range could represent an attractive entry level. The breakout...
CAPITALCOM:EU50
Looking at the upward trend from March 2020, we can see that you will get various readings depending on where you place your trend line.
Due to this and not specifically knowing if the stock is in a downtrend, I placed my trendline to match the newest low. This is because, in an uptrend, this could be the retracement followed by a move higher,...
Game plan:
after the STOXX 50 drops into the target box around 3.93k, try to (not aggressively) long a short term rebounce.
Overview:
After a strong bull run off the covid low, the SX5E struct a major top in Nov '21. Since then we are in corrective territory, which makes me default to the ABC count of Elliott Wave.
Most commonly, C wave projects to the 1.0 to...
In the past few years where the Winter Olympics were held, there was always a local dip to be bought around the day of the opening, to then ended up with a bigger crash a few months later.
The 2022 Games will be opened on 4 Feb, should be fun.
Disclaimer:
Given long enough time, market eventually goes up.
