The world stock indices have grown at the Asian session today, due to enthusiasm caused by yesterday’s speech by Mario Draghi and sharp rise in oil prices following the meeting of the heads of Energy and Oil Ministries of Russia, Qatar and Saudi Arabia in Doha. At the opening of European session European indices have also grown; however, by the middle of the session positive momentum has been fading away.
European index EUROSTOXX50 is falling from the opening level of 2857.0 (ЕМА200 on the hourly chart).
Since December 2015 index EUROSTOXX50 has been in the strong downtrend. Since the first of December the price has been declining from the level of 3515.0. By now, the price has lost over 800 points reaching the lows at the level of 2700.0. Upward correction has stopped close to Fibonacci retracement level of 23.6%, which is near the level of 2890.0.
The price has failed to breakout strong resistance levels of 2857.0 and 2845.0 (ЕМА50 on the four-hour chart) and 2830.0 (ЕМА144 on the hourly chart) making upward correction impossible.
On the 4-hour chart the indicators OsMA and Stochastic give signals for short positions.
The decline has resumed in the downward channel on the daily chart with the lower limit of 2650.0
As long as the price consolidates below the level of 3010.0 (Fibonacci 38.2%, ЕМА144 and ЕМА200 on the 4-hour chart), correction is unlikely.
Support levels: 2790.0, 2700.0 and 2650.0.
Resistance levels: 2830.0, 2845.0, 2857.0 and 2890.0.
Sell Stop: 2810.0.
Take-Profit: 2700.0, 2650.0 and 2600.0.
Buy Stop: 2880.0.
Take-Profit: 2900.0, 3010.0 and 3050.0.