Day trade
Trade view / 15 September 2016 at 6:05 GMT

EuroStoxx: lower highs highlight opportunity

partner and technical analyst / 3 c analysis
United Kingdom
Instrument: EU50.I
Price target:
Market price:
Background

Bearish signals on the week and in each of the last two days have been confirmed; investors selling futures on Wednesday to post a seventh lower daily low in a row and a loss of 31 points on the day. A daily Hanging Man at last week’s top has signalled the deterioration and this could be the Head to a potential bearish Head and Shoulders reversal pattern. 

Going into Thursday though, prices are testing their 100-day average rate; a level which attracted buyers back to the market in August and there is the potential for a bounce. This should be temporary and a selling opportunity.

Management and risk description

Sell the rally and lower the stop to entry if the first target is met.

Parameters

Entry: sell at 2980.

Stop: 3000, just above yesterday's high.

Target: 2948, the four-week low and 2888, last month's base.

Time horizon: today only.


 
Eurostoxx 4 hourly - recovery to losses
 
Eurostoxx Weekly - testing highs
 
Eurostoxx Yearly - Bear Trend
 Source: all charts CQG. Create your own charts with SaxoTrader; click here to learn more 

– Edited by Gayle Bryant

For more on equities click here

Non-independent investment research disclaimer applies. Read more
1y
Michael Liu Michael Liu
Hi Steve, EuroStoxx is EU Stock 50 Futures?
1y
Steve Lucas Steve Lucas
yes michael sep'16 for last time today changes to dec'16 tomorrow...currently 2960
1y
Michael Liu Michael Liu
Thanks
1y
AlexF AlexF
Hi Steve you are talking about the sept contract CFDC not future and not CFDI (index) right ?
1y
Steve Lucas Steve Lucas
Hi Alex, I trade the sep'16 futures - for cfd's you just need to adjust levels
1y
Michael Liu Michael Liu
I am just waiting as no reaching entry price
1y
BertHH BertHH
Hi Steve, yes thank you very much! I am daily enjoying your brilliant trade ideas and comments. It has a great value and impact for me as a daytrader.
1y
Steve Lucas Steve Lucas
Hi Bert, that's very kind of you to say so, thanks
1y
BertHH BertHH
You're welcome, Steve
1y
BertHH BertHH
Hi Steve, do you think our entry will be triggered today? Automatic closing from the sep`16 future will be tomorrow morning right?
1y
Steve Lucas Steve Lucas
Hi Bert, I'm going to cancel order at 4pm my time - I close or cancel all positions at 4pm and run nothing overnight - apart from one small weekly position.
1y
BertHH BertHH
Hi Steve, OK, thank you. So you finish your trading for today. From my side I am watching the market till 10pm my time. May be in the evening session will be triggered but will close by automatic 9.59pm.
1y
BertHH BertHH
in addion, you are totally right, cancel the order cause the sep 16 future will be closed by Activtrades end of session tonight. There is to much risk, that the order will be fulfilled and the marked rallyed and will be closed with loss....makes no sense.

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