20190824 Short STOXX50 European stock rebounded with U.S stock from the begin of the year on the expectation that ECB will continue to support the economy and both sides of the trade war may cool down. Though ECB does claim to support the economy, U.S and China continued to escalate the trade war by raising tariffs against each other. Technically, the European stock index failed to break the upside of the thin range, but economy outlook got worse. Would be a chance to short the European stock index since the economy is the weakest among the major economies.
FESX1! trade ideas
EUROSTOXX with great potential, weekly chart though. I don't know why, but the longer I look at the EUROSTOXX 50, the more bullish I get. There are two distinct ways it will work out.
Door 1: Rally direct. That would mean no more significant lows. Follow the green line, maybe a little lower low, but not much. Here the sky is the limit and as a stop 2600 has to hold.
Door 2: Umleitung. We see a significant low between 2400-2600 and then up. Here the upmove would be limited to 4000-4500.
If I have to choose, I would take door one.