EuroStoxx 50: Will the rally continue?
The EuroStoxx50 showed an astonishing upward momentum during last week’s trading sessions. With two gaps, one at the start of the week, one in the middle of the week, the market was able to break away from the March highs that formed a band between 3300 and 3325. At the end of the week, there was resistance at 3378.
For the market to make further progress, crossing the 4300 levels would be essential to restore investor confidence in the uptrend from the beginning of the year.
A retest of the breakout level between 3340 and 3325 would not be negative for the further progress of the market. Only falling below this zone could lead to lower prices, with the areas around 3300, 3256 and 3200 likely supporting the index. If the bears push the market below this threshold, a re-evaluation will be needed.
If the bulls manage to raise the index above 3400 and continue to dominate developments, the 3350 area could offer significant resistance to the market. If the bulls are unimpressed, this could even open the way to the highs of early August 2018 in the 3493 range.
This week, announcements about fundamental figures and policy decisions may be of particular importance to the market. On Wednesday, the ECB Monetary Policy Statement and Press Conference (including interest rate decision) is due. And then there is the Brexit Deadline on Friday. The Brexit issue – as so often in the past – is open, and investors should be prepared for spontaneous and surprising decisions.
Euro50Jun19 – daily chart | Source: ActivTrader
Written by Daniel Schuetz, External Analyst
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