Current Trend: Bullish (Long-term Uptrend)
Pattern Formation: Expanding Triangle (Sideways Consolidation)
Key Support Level: 5386
Key Resistance Levels: 5470, 5527, 5570
Bullish Scenario:
The STOXX 50 remains within a long-term uptrend, with recent price action consolidating in an expanding triangle pattern.
A pullback from current levels could find support at 5386, a key swing low.
A strong bullish bounce from 5386 would confirm the continuation of the uptrend, targeting 5470 as the next resistance level.
A breakout above 5470 could lead to further upside momentum towards 5527, followed by 5570 over the longer term.
Bearish Scenario:
A confirmed breakdown below 5386 with a daily close below this level would invalidate the bullish outlook.
In this scenario, increased selling pressure could push prices lower, with 5320 as the next key support level.
A further decline below 5320 could open the door for an extended retracement towards 5246.
Conclusion:
The STOXX 50 remains in a bullish trend but is consolidating within an expanding triangle. Holding above 5386 keeps the upside bias intact, with potential targets at 5470 and beyond. However, a breakdown below 5386 would shift the sentiment to bearish, signaling further downside risk towards 5320 and 5246. Traders should monitor price action around the 5386 level for confirmation of either scenario.
This communication is for informational purposes only and should not be viewed as any form of recommendation as to a particular course of action or as investment advice. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Opinions, estimates and assumptions expressed herein are made as of the date of this communication and are subject to change without notice. This communication has been prepared based upon information, including market prices, data and other information, believed to be reliable; however, Trade Nation does not warrant its completeness or accuracy. All market prices and market data contained in or attached to this communication are indicative and subject to change without notice.
Pattern Formation: Expanding Triangle (Sideways Consolidation)
Key Support Level: 5386
Key Resistance Levels: 5470, 5527, 5570
Bullish Scenario:
The STOXX 50 remains within a long-term uptrend, with recent price action consolidating in an expanding triangle pattern.
A pullback from current levels could find support at 5386, a key swing low.
A strong bullish bounce from 5386 would confirm the continuation of the uptrend, targeting 5470 as the next resistance level.
A breakout above 5470 could lead to further upside momentum towards 5527, followed by 5570 over the longer term.
Bearish Scenario:
A confirmed breakdown below 5386 with a daily close below this level would invalidate the bullish outlook.
In this scenario, increased selling pressure could push prices lower, with 5320 as the next key support level.
A further decline below 5320 could open the door for an extended retracement towards 5246.
Conclusion:
The STOXX 50 remains in a bullish trend but is consolidating within an expanding triangle. Holding above 5386 keeps the upside bias intact, with potential targets at 5470 and beyond. However, a breakdown below 5386 would shift the sentiment to bearish, signaling further downside risk towards 5320 and 5246. Traders should monitor price action around the 5386 level for confirmation of either scenario.
This communication is for informational purposes only and should not be viewed as any form of recommendation as to a particular course of action or as investment advice. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Opinions, estimates and assumptions expressed herein are made as of the date of this communication and are subject to change without notice. This communication has been prepared based upon information, including market prices, data and other information, believed to be reliable; however, Trade Nation does not warrant its completeness or accuracy. All market prices and market data contained in or attached to this communication are indicative and subject to change without notice.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.