LiteForex - Analytics

    LiteForex

    803.25 7.50/10
    78% of positive reviews
    Real

    EUROSTOXX50: trading in downward channel Technical analysis as of 03.06.2016

    Analysis and evolution:
    On the daily chart, EuroStoxx50 index is trading in a downward channel whose upper border passes between resistance levels of 3110.0 (ЕМА200 and 50% Fibonacci retracement to a descending wave since December 2015) and 3070.0 (ЕМА144).

    The price has almost reversed to a level of 3050.0 from which May's decline had started.

    Until indicators have reversed and pointed at sale on the H4 chart, short positions should be avoided.

    Our opinion:
    Technically, EuroStoxx50's further growth is limited by the resistance levels at 3070.0 and 3110.0.

    Until indicators have reversed and pointed at sale on the H4 chart, short positions should be avoided.

    A breakout of the level of 3010.0 (38.2% Fibonacci level, ЕМА200, ЕМА144 on H4 charts, ЕМА50 on daily charts) would be a perfect sign to start going short. Growth to the levels of 3070.0 and 3110.0 is quite possible. However, short positions still seem to be more preferable.

    Pending Limit orders from 3070.0 and 3110.0 with stop orders near 3135.0 are also possible.

    Medium-term long positions will be relevant once the price has consolidated above 3150.0 (April's peaks).

    Breakout of the level 3010.0 will contribute to a further decline to 2920.0, 2890.0, 2845.0, and 2700.0 (troughs of the year 2016).

    Support levels: 3010.0, 2920.0, 2890.0, 2845.0
    Resistance levels: 3070.0, 3110.0, 3150.0

    Trading tips
    Sell Stop 3020.0. Stop-Loss 3075.0. Take-Profit 3010.0, 2920.0, 2890.0, 2845.0, 2800.0, 2700.0
    Buy Stop 3085.0. Stop-Loss 3065.0. Take-Profit 3110.0, 3150.0, 3200.0

    downward channel
    downward channel

    breakout at 3010.0 is required
    breakout at 3010.0 is required


    To leave a comment you must or Join us


    By visiting our website and services, you agree to the conditions of use of cookies. Learn more
    I agree