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FINANCIAL MARKETS : we are in the case graph of a tennis ball that bounces less high ...

EUROSTOXX Cylindrical study

Although the Eurostoxx index has twice confirmed a rebound on the level around Protected content 21 November Protected content January 23 last, we are in the case graph of a tennis ball that bounces less high on the floor of an attic to finally find this hole in the floor Protected content will lead down one floor Protected content .

Two scenarios on the Eurostoxx: triangle / rebound in Protected content bearish channel / rebound in Protected content
The lack of support by the volumes, the absence of figure chartist rollover short-term and the inability to reach levels rebounded beyond the first Fibonacci retracements can anticipate a further decline and likely to announce a stopping point to this fall. The first major point of support which could turn the trend is on the level of Protected content . This corresponds to the bounce of the Eurostoxx in March Protected content three years since the fall of Protected content .

Our strategy on the Eurostoxx:
Our scenario calls for the resumption of the index on the level of Protected content . Figure one-shoulder (shoulder first in March Protected content June Protected content / second shoulder in May Protected content an indication of the downward extension of about Protected content after fracture of the neck line on the level of Protected content September. We would be so far beyond that objective.

How to determine that this turning point will be good?
The Eurostoxx should probably confirm a rebound on the level of Protected content both cases. Once reached the first floor, it would then find the strength to start again on the rise and cross the level of Protected content validate a change in trend. This point represents the ratio of Fibonacci 50% calculated on the last wave of decline since the beginning of the year. This pattern of recovery of the market would actually be strengthened beyond the level of Protected content , the Fibonacci ratio of 25% of the fall of the Eurostoxx index since its highest in Protected content June Protected content .

The objectives of bullish rebound in the medium term:
Subject to quickly reach our floor in Protected content , the bullish short-term objectives would be located on the levels of Protected content , 2014, Protected content , Protected content 2100. The bullish medium-term objectives would be located on the levels of Protected content , 2220, Protected content 2425. The long-term objectives would be located on the levels of Protected content , Protected content February Protected content 3220.

What about a graphic breakdown of the level of Protected content
Conversely, break this area lead to the major index much lower and very quickly. The key located on the bottom Protected content a large channel to bear the image of the graph attached. The summits of this channel was reached in March Protected content the level of Protected content June and July Protected content the level of Protected content . The supports of this channel have been reached in October Protected content the level of Protected content March Protected content the level of Protected content .

Louis-Serge Real del Sarte
European Sales Director
GLOBAL EQUITIES

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