EUROPE50 trade ideas
STOXX50 / VSTOXXVSTOXX (Stoxx50 volatility index) is currently flirting with 4 months low level. STOXX 50 already started by touching top line of Bollinger band (20 days, 2 std dev). Comparing with S&P 500 and VIX (SP500 volatility index), we would also see +/- the same thing. Just be ready next week. Expecting at least 3% correction on STOXX50 in one of the days next week, as already quite clear with Saudi and Iran news development.
If Bulls can hold 3000 key, market can target 3200+- Ichimoku setup is neutral: Price is in a thin cloud, all longer averages ard same level 3000+. This is the equilibrium price.
- Heikin-Ashi candle yesterday had a slightly higher low. Could not break back below Kijun Sen and spot Kumo cloud. Today candle and haDelta indicates indecision, and maybe a bullish reversal ahead!
- In case Heikin-Ashi gives a firm bullish signal, then market can target 3200 again. This would mean complete invalidation of the possible bearish Head and Shoulders pattern.
- EWO is still slightly above zero.
Weekly:
Full of questions:
- Are we gonna have a weak bullish Tenkan/Kijun cross here?selling interest there.
- Price is stuck exactly at Tenkan and Kijun. What about Heikin-Ashi momentum? How will the candle look like at the end of this week?
- haDelta/SMA3 crosses down, but still above zero line. What about momentum?
- 3200 is a ston bearish support, and probably market will face serious
My short term bias is less bearish now. Still hard to decide wether it is an early signal for next leg up, or just hesitation before a break down and H&S pattern validation. Interesting days ahead.
We can not exclude the possibility of a rally towards 3200. But as you see on weekly chart, that could well be a strong supp/res area, and a level to look for short entry again.
Retracement sell.This divergence was/is too much for the market.As I showed you yesterday on Twitter, "Machines" don't care about divergences. But smarter Human should.
What is stretched is stretched. Market reached daily resistance ard 3100, and 4H has become extremely overbought.
Market has to retrace or consolidate a bit. Then we'll see if it finally builds the Head and Shoulders on the daily, or if it goes really bullish.
For the short term it is a sell... at least in small size.
Major key level is still a lot lower ard 3000+
Sometimes things look obvious, but opposit happensThat's why we have to use trailing stops!
Look at this 4H chart and pattern!
Obviously Ichimoku setup was bearish, price action showed consolidation with flat/slightly higher lows and lower highs --> absolutely looked like a bear flag.
And what happened? Market agressively spiked through the 100WMA into the thick Kumo.
Today's price action turns the whole picture rather bullish biased again, but I believe this move was a bit too fast.
4H Kumo top will likely block it for now. Also haDelta has reached an extreme high. The index faces daily Kijun resistance too at 3026.
Market will possibly chill down, but later we may see another leg up. If you wish to go long, wait for a pull back to 2970-2980.
Eurostoxx 4 hour is going bullish- If previous fractal via the candles and RSI serves right, it may well break above 3020 and trade higher
- It remains a strong IF but it looks entirely possible as longer TF will post a strong rebound and bullish candles
- With that in mind, the bias is not to short or fade it until a much clearer signal is available - bulls seems adamant to want higher prices in the next few days
$EUSTX50 at an important confluece point!Here are two possible scenarios:
If the price "respect" the trendline and the support it's a BUY.
If it breaks the trendline it's a Sell.
Either way we have a nice Risk/Reward ratio!
You can follow other indexes (such as DAX and S&P 500) as they are with a strong correlation this days.
Please leave your thoughts on the comments!
POTENTIAL BUY ZONE (confluence zone fib + RSI)Hi traders,
Price is approaching a nice confluence area with a perfect fibonacci confluence of 50% + 78.6% retracement aligned with the uptrend line. Note also the RSI approaching the oversold area.
I will look carefuly this zone and wait for a signal to go long.
Happy trading,
