XM Group - Analytics

    XM Group

    609.00 6.50/10
    72% of positive reviews

    Technical Analysis – Eurostoxx index bearish in descending channel

    The EU50 index (Eurostoxx) has been falling in a descending channel since December 2015 from a high of 3522 points to a low of 2832 in January 2016.

    In mid-January 2016, the market fell to a key level at 2969 (which is the September 2015 low). After testing and pivoting at this level, there was a failed attempt to rise higher when meeting strong resistance at the 21-day moving average and the top of the channel line around the key 3050 level.

    RSI is in bearish territory, which adds to the bearish case. A break below 2832 would see more losses towards the 2777 area which was the 2014 low.

    The overall outlook is bearish as long as the market remains below the 200-day moving average.

    Risk Warning: Forex, Commodities, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you fully understand the risks involved and do not invest money you cannot afford to lose. Please refer to our full Risk Disclosure.

    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