- The EuroStoxx 50 bounced rather significantly during the early hours on Monday, using the €4835 level as support, just as we did during the April 19 trading session, where we had bounce from previously.
- Both Thursday and Friday were very negative overall, so this bounce of course is going to be important.
- This suggests to me that the market is going to continue to see plenty of buyers on dips, and I just don’t think that we are quite ready to fall apart.
- Because of this, I like the idea of buying this index, with a stop loss near the €4800 region.
European Central Bank
Keep in mind that the European Central Bank of course has been very active as of late, cutting rates in order to stimulate assets. This will help the stock markets in the European Union quite drastically, and I think this is just what we are seeing right here. This is a reaction to the fact that the central bank in the European Union is willing to step in and support financial markets. Furthermore, I believe that the reaction to the snap elections in France and other places is probably being seen as overdone at this point.
Top Regulated Brokers
Above, we have the 50-Day EMA near the €4975 level, and I think that’s an area that we will be paying close attention to. If we were to break above there it would obviously be very bullish, but I think in the short term it would not be overly surprising to see a little bit of a pullback here and there in this market to offer a bit of a buying opportunity. As long as we can stay above the €4835 level, I don’t see any reason to worry too much about this market, despite the fact that we did have a couple of really bad days.
Equities in general continue to look very positive, and I don’t see how it’s going to be any different Europe, especially considering that the ECB is willing to help. However, we do have some concerns about geopolitics and the like, so there is that possibility that we see a bit of selling pressure coming into the picture. However, in general I think this is an index that continues to find plenty of buyers as things stand.
Ready to trade our daily Forex analysis? We’ve made this stock brokers list for you to check out.