Europe 50 - Bearish Bat PatternEurope 50 index has bearish reversal bat pattern. Currently in its potential reversal zone. Once it starts forming lower highs and lower lows , we can take a short trade.
EU50EUR trade ideas
European shares continued to climb, alongside US futuresEUROPEAN SHARES
European shares continued to climb, alongside US futures, as risk appetite grew at the start of the final trading session of the week. Investors continue to respond positively to the optimistic discussions surrounding the debt-ceiling issue in Washington, which have bolstered market sentiment towards equities, despite lingering uncertainties brought by recent macro data.
Indeed, sticky inflation, slowing recovery momentum in China, monetary tightening, and weaknesses in US employment data and the banking sector can still be seen as lingering dark clouds for investors who could be tempted to seek hedging solutions once the debt ceiling issue is temporarily solved.
Meanwhile, all sectors are on the rise in Europe, with the best performances being brought by basic materials and energy shares. The STOXX-50 is trading around its first major resistance at 4,385.0pts following a bullish clearing of its bearish short-term trendline.
The next target is the all-time high at 4,420.0pts, while a failure below 4,385.0pts could drive the market in a pull-back move around 4,375.0pts, 4,352.0pts, and 4,330.0pts by extension.
Pierre Veyret– Technical analyst, ActivTrades
EU50EUR stalling at previous highsTrade Idea: Selling EU50EUR
Reasoning:
• Hanging man dominating on the weekly chart
• Overnight price action reversing possible shooting star
• 4hr evening star forming
• 1hr evening star forming
Entry Level: 4385.2
Take Profit Level: 4350.4
Stop Loss: 4399.6
Risk/Reward: 2.42:1
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 trading. The technical analysis, like all indicators, strategies, columns, articles and other features accessible on/though this site is for informational purposes only and should not be construed as investment advice by you. Your use of the technical analysis, as would also your use of all mentioned indicators, strategies, columns, articles and all other features, is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness (including suitability) of the information. You should assess the risk of any trade with your financial adviser and make your own independent decision(s) regarding any tradable products which may be the subject matter of the technical analysis or any of the said indicators, strategies, columns, articles and all other features.
EU50EUR breaking down
Reasoning: Posted consecutive negative candles last week, signifying a potential topping formation. Potential ABC correction on daily chart and evening doji star reversal. Downward trending resistance line at 4341. Morning spike higher running into resistance on the 1hr & 4hr chart Ichimoku cloud.
Entry Level: 4299.1
Take Profit Level: 4218.4
Stop Loss: 4325.6
Risk/Reward: 3.05:1
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 trading. The technical analysis, like all indicators, strategies, columns, articles and other features accessible on/though this site is for informational purposes only and should not be construed as investment advice by you. Your use of the technical analysis, as would also your use of all mentioned indicators, strategies, columns, articles and all other features, is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness (including suitability) of the information. You should assess the risk of any trade with your financial adviser and make your own independent decision(s) regarding any tradable products which may be the subject matter of the technical analysis or any of the said indicators, strategies, columns, articles and all other features.
EU50EUR at good risk/reward levelsReasoning: Posted hanging man candles last week, signifying a potential topping formation. Potential ABC correction on daily chart and evening doji star reversal. Downward trending resistance line at 4341. Morning spike higher running into resistance on the 1hr & 4hr chart Ichimoku cloud.
Entry Level: 4332.3
Take Profit Level: 4291.1
Stop Loss: 4347.7
Risk/Reward: 2.68:1
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 trading. The technical analysis, like all indicators, strategies, columns, articles and other features accessible on/though this site is for informational purposes only and should not be construed as investment advice by you. Your use of the technical analysis, as would also your use of all mentioned indicators, strategies, columns, articles and all other features, is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness (including suitability) of the information. You should assess the risk of any trade with your financial adviser and make your own independent decision(s) regarding any tradable products which may be the subject matter of the technical analysis or any of the said indicators, strategies, columns, articles and all other features.
European equities climbed on ThursdayEUROPEAN SHARES
European equities climbed on Thursday, paring some of yesterday’s losses, as market sentiment strengthens following the Federal Reserve’s rates decision and prior to the ECB announcement.
Jerome Powell provided investors with what they were waiting for, lifting borrowing rates by 25 basis point higher to the 5.00%-5.25% target range, the highest since 2007.
While the decision on rates didn’t surprise, investors were interested to see a shift in the wording from the Fed chairman after he hinted this could be the final hawkish move of the current tightening cycle.
This tone change is being welcomed by equity and commodity traders as it lifts some of the pressure brought by a higher US dollar and reduces the prospect of a more aggressive FOMC.
That said, investors still have a lot to digest with today’s decision on rates and press conference from the ECB, as well as tomorrow‘s US jobs report for April, which will certainly contribute to increased market volatility.
Pierre Veyret– Technical analyst, ActivTrades
European stocks at a significant resistanceEuropean stocks broke out of their channel months ago, but they are now facing an all-time resistance at the top, which positions them perfectly for a potential drop. If the SPX breaks out, it could mean that Europe will start retracing down while the SPX surges. However, it could also mean that both the SPX and EUR50 will begin their real bear market moves.
Banks failing!!!! EU50 showing signs of reversalTrade Idea: Selling EU50EUR
Reasoning: Posted hanging man engulfing candle last week, signifying a key reversal. Potential ABC correction on daily chart and additional hanging man from Friday. Spike higher has been sold into this morning posting a shooting star candle on the 4hr chart at Ichimoku cloud resistance.
Entry Level: 4364.3
Take Profit Level: 4315
Stop Loss: 4382.0
Risk/Reward: 2.8:1
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 trading. The technical analysis, like all indicators, strategies, columns, articles and other features accessible on/though this site is for informational purposes only and should not be construed as investment advice by you. Your use of the technical analysis, as would also your use of all mentioned indicators, strategies, columns, articles and all other features, is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness (including suitability) of the information. You should assess the risk of any trade with your financial adviser and make your own independent decision(s) regarding any tradable products which may be the subject matter of the technical analysis or any of the said indicators, strategies, columns, articles and all other features.
A very reliable 12 week cycle says top formedThe S&P 500 seems to be following an 11-12 week cycle since the start of this bear market. IF this holds again, it means the top was already formed last week and the market starts to head lower from here. I have also got confirmation for this by looking at Euro Stoxx ~ 8 week cycle which is giving the same signal.
European benchmark indices opened slightly higher on ThursdayEUROPEAN SHARES
European benchmark indices opened slightly higher on Thursday, halting their recent bearish correction, as positive corporate earnings reports boosted market sentiment.
Investor appetite for risk grew following a batch of encouraging reports from companies in different region and from different sectors, including Deutsche Bank AG, STMicroelectronics NV, Banco Bilbao Vizcaya Argenta SA, Meta Platforms Inc and Microsoft.
This situation has brought a temporary change in market sentiment as many were pricing in far more negative announcements than revealed so far. However, with major companies such as AstraZeneca PLC, Barclays PLC, and 13 others from the French CAC-40 index yet to release their Q1 earnings, it is uncertain whether the positive trend will continue.
Traders are also keeping an eye on crucial US GDP and initial jobless claims data, looming in the afternoon, to see how the Federal Reserve may adjust the pace of its monetary tightening.
The STOXX-50 index has its eyes towards the 4,365.0pts / 4,375.0pts resistance zone following its rebound over the 4,325.0pts area.
Pierre Veyret– Technical analyst, ActivTrades
stoxx updateindex is expecting to retrace toward trendline then continue its upward move toward 78.6% expansion of fibo level
please see big picture as below
Joe Gun2Head - EU50 Correction expectedTrade Idea: Selling EU50
Reasoning: Major resistance on the weekly chart
Entry Level: 4393
Take Profit Level: 4347
Stop Loss: 4412
Risk/Reward: 2.25/1
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 trading. The technical analysis , like all indicators, strategies, columns, articles and other features accessible on/though this site is for informational purposes only and should not be construed as investment advice by you. Your use of the technical analysis , as would also your use of all mentioned indicators, strategies, columns, articles and all other features, is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness (including suitability) of the information. You should assess the risk of any trade with your financial adviser and make your own independent decision(s) regarding any tradable products which may be the subject matter of the technical analysis or any of the said indicators, strategies, columns, articles and all other features.
Potential for a reversal ??we may be in a potential reversal setup at price action looks to complete an impulsive 5 waves.
weekly supply at 4369.71/4307.58.
I will be looking a decent reversal signal on the daily and looking to enter on any subsequent short positions on the lower timeframes
eustx50eustx50 may fall from here . volume on this rise is not supporting and bearish divergence as well.
we may complete harmonic butterfly pattern.
NFA DYOR
Joe Gun2Head Trade - EU50 Breaking from a wedgeTrade Idea: Buying EU50
Reasoning: Breaking from a wedge
Entry Level: 4316.6
Take Profit Level: 4365
Stop Loss: 4291
Risk/Reward: 2:1
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 trading. The technical analysis , like all indicators, strategies, columns, articles and other features accessible on/though this site is for informational purposes only and should not be construed as investment advice by you. Your use of the technical analysis , as would also your use of all mentioned indicators, strategies, columns, articles and all other features, is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness (including suitability) of the information. You should assess the risk of any trade with your financial adviser and make your own independent decision(s) regarding any tradable products which may be the subject matter of the technical analysis or any of the said indicators, strategies, columns, articles and all other features.
Joe Gun2Head Trade - Speculative sell on EU50.Trade Idea: Selling EU50
Reasoning: Speculative sell, stalling at the highs?
Entry Level: 4324.1
Take Profit Level: 4204
Stop Loss: 4343
Risk/Reward: 6.91:1
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 trading. The technical analysis , like all indicators, strategies, columns, articles and other features accessible on/though this site is for informational purposes only and should not be construed as investment advice by you. Your use of the technical analysis , as would also your use of all mentioned indicators, strategies, columns, articles and all other features, is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness (including suitability) of the information. You should assess the risk of any trade with your financial adviser and make your own independent decision(s) regarding any tradable products which may be the subject matter of the technical analysis or any of the said indicators, strategies, columns, articles and all other features.
Equity markets traded sideways on MondayEUROPEAN SHARES
Equity markets traded sideways on Monday, hovering around their annual highs, as investors digest the surprising decision from OPEC+ countries, at the beginning of a new quarter.
Most benchmarks slid shortly after the opening bell following an unexpected oil output cut announcement from OPEC countries, which sent black gold 5% higher. While higher oil prices normally tend to support stock markets, the news wasn't welcomed by equity traders here as it revives inflation concerns, which adds uncertainty to an already blurry mid-term context on monetary policy. This news may tempt some investors to look for safety, taking profits out of riskier assets, following solid performances registered at the end of the first quarter. However, traders are also eyeing a new batch of major macro data this week, which may prove market sentiment to be resilient as many investors already expect monetary conditions to improve this year.
The Stoxx-50 index still trades around 4330.0pts, a 2023 peak, with 4415.0pts as the next resistance level if prices manage to clear the current level.
Pierre Veyret– Technical analyst, ActivTrades
Consumer goods gains offset by financial and real estate lossesEUROPEAN SHARES
Stocks opened mixed in Europe, with lower market volatility than usual, as traders brace for the last trading session of the quarter that will be full of macro developments.
Gains in the consumer goods sector have been offset by losses registered by financials and real estate shares, as investors are tempted to take some profits out following a sharp two-day bull run and ahead of key macro data this afternoon.
Investors who have priced in a more dovish approach from central banks are likely to closely monitor the new inflation print from the Eurozone this morning, while the US PCE Core index looms in the afternoon alongside another speech from ECB President Christine Lagarde. This is likely to significantly increase market volatility for the last session of the week, and provide investors with more visibility about where monetary policies will go, even though some Fed officials have already hinted that interest rates needed to go further up to combat sticky inflation.
That said, a pull-back in equities wouldn’t come as a big surprise to anyone following the market rally registered in the second part of March, and most benchmarks could potentially come back to test newly established support levels. The Stoxx-50 index seems to confirm this scenario so far after prices filled a bullish gap shortly after the opening bell, paving the way for an extended consolidation towards the 4,210/4,225pts zone.
Pierre Veyret– Technical analyst, ActivTrades
Benchmarks from London to Milan were in the green on ThursdayEUROPEAN SHARES
Share markets continued to edge higher in Europe, extending gains registered yesterday evening on Wall Street, as investor appetite for risk is on the rise before the end of the quarter.
Benchmarks from London to Milan were in the green on Thursday, led higher by all sectors, but with the best performances being brought by real estate stocks so far.
Market sentiment remains relatively positive, and investor confidence remains high despite the recent turmoil brought by the financial sector, as appetite for risk gets supported by the prospect of dovish pivots from central banks, providing a good excuse to push stock indices higher just before the end of the quarter. However, the current rally is being built more on expectations rather than facts and proper actions, which means benchmarks could be under the threat of a sharp drop if central banks (especially the Fed) were to disappoint investors.
More market volatility is likely to be on its way today as traders wait for the new German CPI print, the Eurozone Economic Confidence, US GDP and jobless claims while speeches from Fed officials also loom later in the afternoon.
The STOXX-50 now trades well above 4250.0pts at 4280.0pts and seems to be on its way for a 100% retracement of the short-term bear trend started at the beginning of the month.
Pierre Veyret– Technical analyst, ActivTrades
Stock indices rose in Europe on ThursdayEUROPEAN SHARES
Stock indices rose in Europe on Thursday, enough to pare yesterday’s losses after bullish enthusiasm towards Chinese tech shares strengthened market sentiment everywhere ahead of key macro data this week.
Confidence in equity markets seems to remain strong so far, with bull traders defending support levels everywhere on the old continent despite the banking turmoil, which was pushed further yesterday after police raided offices of five major French banks as part of an investigation into tax fraud claims. Investors are pricing in bigger liquidity supply as well as a more dovish approach from central banks, in the shape of slower rate hikes and possibly even rate cuts, from central banks, providing a short-term support to market sentiment. However, many investors are already looking toward this week’s new US inflation figures - a key indicator for the Fed in the driving of its monetary policy - in order to have more visibility on where rates will finally sit. Meanwhile, more volatility may be registered in the afternoon, especially towards energy shares, with the release of US pending home sales data as well as the US crude oil inventories.
The Stoxx-50 index currently challenges its first major resistance around 4190.0pts/4200.0pts following a rebound over the 4155.0pts support level. Both EMA act as support to the market while the MACD indicator confirms its bullish turn. The next target for prices can be located towards 4250.0pts, if a clearing above 4200.0pts were to be confirmed by daily close.
Pierre Veyret– Technical analyst, ActivTrades
Stocks slid lower in Europe EUROPEAN SHARES
Stocks slid lower in Europe at the opening of the last trading session of the week, as lingering worries about the financial sector keeps pressuring market sentiment.
Despite US treasury secretary Janet Yellen’s reassuring speech yesterday, most investors remain cautious towards riskier assets and prefer to seek for safety while waiting for further development. Today’s bearish price action has also been brought by a batch of poor PMI data from France and Germany and disappointing GDP figures from Spain, that have sent benchmarks towards their first support levels.
However, even if global uncertainty remains, the fact major central banks have pledged to provide support to economies through an increase in liquidity to the financial sector, is likely to lift market sentiment on the short to mid-term basis. We see the current price action as a potential pull-back on newly registered support zones, before reaching new highs. The Stoxx-50 trades close to a major support at 4,150.0pts, weighed down by financial and energy shares, while both the RSI and moving averages remain bullish so far.
Pierre Veyret– Technical analyst, ActivTrades
