Date: 29 Mar 2019
The cloud of Brexit is, of course, always floating in the air these days. Today, Friday, another motion on the Brexit deal will be tabled and voted on. What will happen?
Nevertheless, it is worth taking a look at the European index EuroStoxx50. After a sharp rise after Christmas last year, the index tried twice to pass the 3330 mark but failed twice. The upward trend line has been broken, and the MACD indicator is negative. Only the histogram could show the first slight tendencies for a weakening of the negative momentum.
The question now is whether the bulls can again take charge. Currently, the market is at a crucial structural level in the 3255 range, resulting in a band between 3255 and 3300, which is essential to the market’s progress. Only a sustainable break of 3300 and overcoming the highs from the beginning and middle of March can drive the market to new highs.
There could be further resistance in the 3380 area. Overcoming this resistance could open the way to the essential structural level at 3450.
If the area around the 3250 is too strong for the bulls and they leave the market to the bears, then the first significant support could be in the 3170 area on the way down.
If the index breaks through here as well, there is also a significant structural level in the 3,050 area that could provide support to the market.
Euro50Jun19 – daily chart. Source: ActivTrader
Written by Daniel Schuetz, External Analyst.
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