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.
Risk Warning: CFD and Spot Forex trading both come with a high degree of risk. You must be prepared to sustain a total loss of any funds deposited with us, as well as any additional losses, charges, or other costs we incur in recovering any payment from you. Given the possibility of losing more than your entire investment, speculation in certain investments should only be conducted with risk capital funds that if lost will not significantly affect your personal or institution’s financial well-being. Before deciding to trade the products offered by us, you should carefully consider your objectives, financial situation, needs and level of experience. You should also be aware of all the risks associated with trading on margin.
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