STOXX50 trade ideas
EUROSTOXX 50 (SX5E)The violation of the 3.800 level could occur in the case of confirmation of the war event (Russia-Ukraina). There would therefore be a further sell-off phase that would lead to the implementation of a first capitulation that would lead the Eurostoxx50 to move in the 3600-3200 range. The low end of this range could represent an attractive entry level. The breakout of the 3200 levels (although I personally see it as very difficult event) could only occur in a recession scenario associated with a very aggressive intervention by the Fed, with Russian tanks on the German border.
Broadening Formation & Wedge – Indices – EU50 - Daily - ShortCAPITALCOM:EU50
Looking at the upward trend from March 2020, we can see that you will get various readings depending on where you place your trend line.
Due to this and not specifically knowing if the stock is in a downtrend, I placed my trendline to match the newest low. This is because, in an uptrend, this could be the retracement followed by a move higher, and this has been known to happen in indices. Remember that indices are a collection of top-performing companies, so the price typically goes up.
Based on this, now I make my analysis. I can comfortably say that if it is pushed past this new low, the uptrend is probably over.
You can see the ascending broadening formation that begins in April 2021 and move, creating new higher highs till January 2022, where the price starts to lose its momentum. It subsequently creates a wedge with a series of lower highs but is still supported by the bottom support level, which is proving difficult to push past.
If you take note of the volume for each valley that hits this support level, you will see that it is above average. This happens every time the price moves there. This means that the support level in this area is a potent one. Not to mention if we look at the price here, you will find it sitting at a tidy round number (4000 EUR). From this, we can assume that buys have bought in here and are determined not to let price breakthrough.
However, if we look at the tightening wedge, along with the series of lower highs, the partial decline, and the volume just days prior signaling all the selling pressure, we can perhaps be inclined to think that a decline in price is on the way. Moreover, the wedge has formed what looks like a double top, but we will have to wait for the price to break the 4000 (Euro) mark in order for it to be confirmed.
I would suspect that if the price drops and closes below 4000, then there would be a potential short position. You might think that the previous valleys with their large volume would be a barrier to the short move if it does break, but I think they are too close within the price reach to be of any significance.
You could perhaps look at the first valley as your profit target. That would be approximately at a price 3853.
If you jump in at 4000 or just below as I suggest, you are looking at a target of 5 to 1. Remember that your stop would be just above 4000. This is because in the event that this is just a retracement, you would want to be out of the position immediately.
You could even tighten up your stop to increase your risk to reward, but I would wait to see what the indices does before taking this strategy.
SX5E: eyeing a rebounce from 3.9k, downward pressure remainsGame plan:
after the STOXX 50 drops into the target box around 3.93k, try to (not aggressively) long a short term rebounce.
Overview:
After a strong bull run off the covid low, the SX5E struct a major top in Nov '21. Since then we are in corrective territory, which makes me default to the ABC count of Elliott Wave.
Most commonly, C wave projects to the 1.0 to 1.382 extension of A wave. So if my count is correct, I'm expecting a local bottom to be struct just under 4k, from where I will try to play a short term rebounce.
The red arrows at the lower left corner come from two major lows struct in Jul and Oct '21. They might also have some indicative value.
As I previously, jokingly, noticed that the market seems to find a local bottom around the opening day of the Winter Olympics, Feb 4th might just be the day to watch ;)
Further I'm also expecting one more leg down after the rebounce, but that will depend on where this rebounce ends.
EW interpretation:
The initial drop in Dec '21 can be regarded as wave circle a, while circle b ran back to almost the top again, almost 100% retracement of circle a. These are marked in yellow and their fib levels help me put the yellow target box roughly between 3.87k and 4.01k.
Note that circle b itself has an outspoken 3 waves structure, marked in blue. Subwave (b) retraced to almost 100% of (a) while subwave (c) reached between 1.236 and 1.382 extension of subwave (a). Symmetry might be in play here.
By my count we are currently in progress of circle c, which should have a structure with 5 subwaves, marked in azure. The sharp decline in the last few sessions fits the impulsive character of wave (iii) of c, it's usually a reliable signal that a (stage of the) correction is near completion and a reversal is due.
Invalidation:
If SX5E recovers the top of subwave (ii) without dropping into the target box first, my count is likely wrong and no entry will be attempted.
On the other hand, if SX5E drops below the yellow bow, then I will have to reassess the entry and stop level.
The ideal entry signal will be when SX5E break out of the blue box to the upside, after fallen into it. Stop can be place just under the yellow box.
EURO STONXXXXX to follow RUTeuro stonks is looking a lot like the RUT chart b4 the damp
negative divergence been building for a while
Let's see what happens
GRI 2022
Broad market: It's the end of the world... until the WO beginsIn the past few years where the Winter Olympics were held, there was always a local dip to be bought around the day of the opening, to then ended up with a bigger crash a few months later.
The 2022 Games will be opened on 4 Feb, should be fun.
Disclaimer:
Given long enough time, market eventually goes up.
Europe 50 January 2022Based on my analysis: quick correction to 50 EMA and then we might see ATH by end of January
EU50 a turn at the 0.5 Fibonacci 🦐EU50 on the daily chart after the recent impulse retraced in a channel and perfectly retest the previous resistance now turn support at the 0.5 Fibonacci level.
According to Plancton's strategy IF the price will break above and satisfy the ACADEMY conditions we will set a nice long order.
--––
Follow the Shrimp 🦐
Keep in mind.
🟣 Purple structure -> Monthly structure.
🔴 Red structure -> Weekly structure.
🔵 Blue structure -> Daily structure.
🟡 Yellow structure -> 4h structure.
⚫️ Black structure -> <4h structure.
Here is the Plancton0618 technical analysis , please comment below if you have any question.
The ENTRY in the market will be taken only if the condition of the Plancton0618 strategy will trigger.
Europe 50 IndexUsed pivots and geometry here mainly
The only correction i'm calling initially is the retest
All depends on the euro, but i could see europe stonks outperforming us
NOT TRADING ADVICE
EUSTX50 Descending TrianglePrice closed below EMA 10, EMA 20, and Horizontal Support Resistance Level.
EU50 H4 LongReason for buy
D1 is uptrend.
H4 correction is broken by the volume increase.
enter the long trade right now.
Happy trading.
EU 50 TO 3KI'm bearish generally. I have taken the EU index. Selected major pivots- and arrived at a 3k target
This is the action-reaction method of TA
Also known as 'market geometry'
Trade at your own risk, folks
Timeframe 2-3 months
Buckle up.. Massive shorts about to kick in!European Markets and US Stocks made a massive bullrun during "the pandemic".
Pretty strange if you ask me for a scenario where the world was about to stop spinning...
But all over the world, moneyprinting seemed to be the way out.
And that money was given to those who needed the help, good to know
but it also made people lazy, it kept them comfortable.
They where not thinking about going back to work,
so the real economy could pick up its strenght.
And with that money things where bought, also Stocks..
Stocks bought on printed money, money that has no backbone or anything
to back it up, meaningless paper..
I dont need to explain anything further, i hope...
Trade safe and stay healthy!
Arthur
EU50 ShortEU50 led some bearish candlesticks on daily closes last week, despite it closing into a range we’re looking for a rejection off key level before taking trade. When we see that rejection we only expect it to drop to major support level however we could see some prolonged movement. Move SL to entry upon second TP hitting. RSI floating at 63 despite hitting 75.
R:R 1:2:2
GL
EUSTOXX50, sellHow to use TP!
When the order price breaks down Tp1,
you wait for Tp2 and SL moves to Tp1,
so as to secure earnings.
So with Tp2 to Tp3.
When we publish the closing of a position, you close it.
When the order comes to SL, always
consult with us, do not close the order.
Follow your open positions!
EUR50 ELLIOTT WAVE ANALYSISEur50 is showing an incomplete correction of wave 3.so price is showing a potential drop to complete wave b, then price will then continue with its bullish bias. trade with proper risk management.
Euro Stoxx 50 reversal or 'sell the top'EU50 recorded yet another several consecutive days of gains. The price has crossed upper limit of parallel increasing channel with RSI crossing level of 73.
Similar situation occurred in Sep this year whereas RSI remained slightly below 70 yet the index recorded a visible fall to roughly 0.5 level fib retracement.
Current fibo retracement indicate possible fall to 4272 (0.236) and 4213 (0.382) (75 and 134 respectively from 4347 index level of today). With a very narrow SL of 4367 (20 points from 4347) this represents a 3,75:1 reward/risk ratio.
At the same day (Mon 08/11) we see falling Nasdaq100 and SP500 recording small gains with VIX raising over 6% and US yields increasing as well. CURRENCYCOM:EU50
EU50 Bullish on all timeframesEU50/ Eurostoxx50/ SX5E completed its bearish retracement on Monday this week and is now back on its bullish nature. I anticipate it to reach 5000 by the end of October 2021.
I've set my short term goals as follows:
TP1 4235
TP2 4193
EU50| Bearish Continuation Correction + CAB Entry :)We've had a short bias for a bit on all indices, this one is very clean and it looks like we finally broke out of the continuation correction to the downside. Now all we want to see is a LTF correction after the breakout which will be our entry to carry the momentum lower.
EU50 LONG possibilityHello Traders,
Wait for the retest of the counter-trendline and confirmation of the indicators.
Than we have an entry.
Wishing you a great week of trading!
