Review: After the market participants successfully tested the 2,700 point mark in the past few days, the European leading index Euro-Stoxx 50 was able to increase significantly more than 10 percent. This week, the index even exceeded the price target at the 3,100 point mark. Last week, the bulls failed at this round mark. The current upward momentum is very strong and could now drive the index to the next round mark. The EMA200 in the daily chart runs at 3,250 points this week. A small open gap is around 3,220 points. Yesterday the index closed at 3,159 points.
Outlook: The bulls have now created a good cushion, because a solid sell signal can no longer be expected promptly. Therefore, the bulls are likely to dominate the events for the next few days and weeks.
The long scenarios: after the last price targets set at 3,023 points and 3,100 points were worked out, new upward targets are set at 3,200 points and 3,250 points. But then the air on the stock markets is likely to get very thin.
The short scenarios: If the index falls below the 2,950 point mark again in the coming days, a weak sell signal with a target of 2,800 points would result. Buyers are likely to become more active again at this price level.
Disclaimer: The text is a column of the UBS. The content of the column is not the responsibility of 4investors and therefore does not necessarily have to agree with the opinion of the 4investors editorial team. Any liability and claims are therefore expressly excluded by 4investors!
At a glance – Chart and News: EuroStoxx 50 – share index