EuroStoxx 50: Critical Support to Watch
The EuroStoxx 50, one of Europe's most important benchmark indices, has been showing signs of weakness in recent days, making it crucial to keep an eye on certain support levels. According to Joan Cabrero, technical analyst at Ecotrader, investors should be vigilant about the index's performance around 4,800 points, a key support level. Should the index lose this zone, the next critical level is at 4,688 points, which corresponds to the lows of recent months.
The EuroStoxx 50 has struggled to overcome the bearish guideline that has guided its consolidation over the past nine months, with significant resistance at 5,050 points. This short-term failure in its attempt to overcome that guideline reinforces the need to keep an eye on the December and November lows, which will be critical in determining the short-term trend.
Strategy for Investors
For investors following Ecotrader's strategy, the recommendation is clear: do not reduce exposure to the European stock market as long as the EuroStoxx 50 does not lose the aforementioned support levels. The strategy is to wait for the index to approach these lows before considering new purchases.
In summary, the levels to watch on the EuroStoxx 50 are:
- Key support around 4,800 points.
- Critical support around 4,688 points.
- Resistance at 5,035 points.
The RSI is currently at 53.55%, the Check Point (POC) around 4,972 points.
Investors should keep an eye on these levels to make informed decisions and adjust their portfolios according to the evolution of the index.
Ion Jauregui - Analyst ActivTrades
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The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
The EuroStoxx 50 has struggled to overcome the bearish guideline that has guided its consolidation over the past nine months, with significant resistance at 5,050 points. This short-term failure in its attempt to overcome that guideline reinforces the need to keep an eye on the December and November lows, which will be critical in determining the short-term trend.
Strategy for Investors
For investors following Ecotrader's strategy, the recommendation is clear: do not reduce exposure to the European stock market as long as the EuroStoxx 50 does not lose the aforementioned support levels. The strategy is to wait for the index to approach these lows before considering new purchases.
In summary, the levels to watch on the EuroStoxx 50 are:
- Key support around 4,800 points.
- Critical support around 4,688 points.
- Resistance at 5,035 points.
The RSI is currently at 53.55%, the Check Point (POC) around 4,972 points.
Investors should keep an eye on these levels to make informed decisions and adjust their portfolios according to the evolution of the index.
Ion Jauregui - Analyst ActivTrades
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
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