Euro Stoxx 50 consolidates, traders expecting further rises
Euro Stoxx 50 advances slightly bullish since March 19th when the price found fresh buyers at 2,231.4 pts after the massive sell-off on the stock market, which began in mid- February.
Once the price found support at 2,231.4 pts, Euro Stoxx 50 bounced surpassing the previous high of wave ((iv)) of Minute degree labeled in black, reaching a fresh higher high at 2,869.7 pts on March 26th.
After this movement, the price is consolidating, developing a corrective move in a three- wave sequence that corresponds to a wave ((ii)) or ((b)) in black.
The new higher high at 2,941.4 pts, reached on April 07th session, activated a new bullish sequence which could correspond to a wave ((iii)) or ((c)). As illustrates in the 4-hour chart, its internal subdivision should be in a five-wave sequence identified in blue.
A bullish position will activate if the price breaks and closes above 2,860.2 pts. In our conservative scenario, we expect an upside to 3,040.2 pts. If the Pan-European benchmark increases its bullish momentum, the price could advance to 3,205.2 pts, and even climb until 3,425.3 pts.
The invalidation level of our bullish scenario locates at 2,670.3 pts.
Trading Plan Summary
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Entry Level: 2,860.2 pts.
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Protective Stop: 2,670.3 pts.
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1st Profit Target: 3,040.2 pts.
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2nd Profit Target: 3,205.2 pts.
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3rd Profit Target: 3,425.3 pts.
Author
EagleFX Team
EagleFX
EagleFX Team is an international group of market analysts with skills in fundamental and technical analysis, applying several methods to assess the state and likelihood of price movements on Forex, Commodities, Indices, Metals and
