Watch for SEP'16 EuroStoxx corrective bounce to continue, for now
Similar to the Dax, initial losses attracted EuroStoxx buyers back to the market last week from close to the previous week’s three year base at 2,645, for sentiment to rally by 232 points from the low.
The market has posted five higher daily lows in a row keeping signals pointing higher. However signals also suggest the move is corrective and temporary, so the call is held with some caution.
Management and risk description
Allow room to buy a dip and raise stop to entry if the first target is met.
Entry: market and 2802, Thursday's low.
Stop: 2710, the window which remains open since Monday's close.
Target: 2976, the June 23 low and 3,058, June's top.
Time horizon: This week until midday on Friday (1100 GMT).
Non-independent investment research disclaimer applies. Read more