EUROSTOXX50 : Volatility in the financial markets continues

February 3, 2016

Amid sharp decline in the global stock indices since the beginning of the year European index EUROSTOXX50 has lost about 14%. During the final surge of decline from 3515.0 to 2840.0 last December, the price has managed to go above the level of 23.6% Fibonacci. Upward correction stopped at the level of 3050.0. Since the beginning of European session the price has broken down the level of 3000.0 (Fibonacci 23.6%) and is going down on the daily chart in the downward channel with the bottom limit below the level of 2840.0 (lows of the year). On the four-hour chart the price has pushed off from the level of 3015.0 (ÅÌÀ50) and the upper limit of the downward channel, going through the level of 3000.0.

On the four-hour chart the indicators OsMA and Stochastic give sell signals. On the daily chart the indicators are turning in favour of the short positions.

Consolidation of the price below the level of 2950.0 will return the price in the downtrend. If the price goes above the level of 3180.0 (Fibonacci 50%), it will indicate the reverse of downtrend. Strong resistance levels 3100.0 (Fibonacci 38.2% and ÅÌÀ144 on the four-hour chart) and 3150.0 (ÅÌÀ200) will prevent further rise in the index EUROSTOXX50.

Support levels: 2950.0, 2920.0, 2900.0 and 2840.0.
Resistance levels: 3000.0, 3015.0, 3050.0, 3100.0, 3135.0, 3150.0 and 3180.0.

Trading tips

Sell Stop: 2940.0. Stop-Loss: 3020.0. Take-Profit: 2900.0, 2840.0 and 2800.0.
Buy Stop: 3070.0. Stop-Loss: 2990.0. Take-Profit: 3100.0, 3135.0, 3150.0, 3180.0 and 3200.0.

Publication source
LiteForex information  LiteForex reviews

December 5, 2016
Crisis Lite
The Italian referendum on constitutional reform saw voters reject the proposals in front of them, in a fairly decisive manner. As such, Italian PM Renzi will tender his resignation today and this became part of the issue...
December 2, 2016
Oil may remain above $50
The Oil price continued to push higher today reaching its highest level in over a year with some predicting that the OPEC deal reached yesterday was a game changer and further gains are expected...
November 29, 2016
Euro may hit parity with US dollar
The Euro was under further pressure today against the US dollar on the back of political instability in Italy and, bringing it closer to parity with its American counterpart...

Tickmill Rating
FBS Rating
Z.com Trade Rating
Fort Financial Services Rating
OANDA Rating
OctaFX Rating

IQ Option Rating
365BinaryOption Rating
EZTrader Rating
TropicalTrade Rating
Porter Finance Rating
Banc De Binary Rating