Euro Stoxx 50 (STOXX.NDX)

Short term

Euro Stoxx 50 has broken the rising trend channel in the short term and reacted strongly down. For the time being, it is difficult to say anything about the future trend direction. The index is approaching support at 4850 points, which may give a positive reaction. However, a break downwards through 4850 points will be a negative signal. Negative volume balance shows that volume is higher on days with falling prices than days with rising prices. This indicates decreasing optimism among investors. RSI is below 30 after the falling prices of the past weeks. The index has strong negative momentum and further decline is indicated. However, particularly in big stocks, low RSI may be a sign that the stock is oversold and that there is a chance for a reaction upwards. The index is overall assessed as technically neutral for the short term.

Recommendation one to six weeks: Hold

Medium term

Euro Stoxx 50 has broken through the floor of a rising trend channel in the medium long term. This indicates a slower rising rate at first, or the start of a more horizontal development. There is no support in the price chart and further decline is indicated. In case of a positive reaction, the index has resistance at 5090 points. Negative volume balance indicates that volume is high on days with falling prices and low on days with rising prices, which weakens the index. The short term momentum of the index is strongly negative, with RSI below 30. This indicates increasing pessimism among investors and further decline for Euro Stoxx 50. However, particularly in big stocks, low RSI may be a sign that the stock is oversold and that there is a chance for a reaction upwards. The index is overall assessed as technically negative for the medium long term.

Recommendation one to six months: Negative

Long term

Euro Stoxx 50 has broken the floor of the rising trend channel in the long term, which indicates a weaker initial rising rate. The index has broken down through support at points 5100. This predicts a further decline. In case of positive reactions, there will now be resistance at points 5100. Negative volume balance weakens the index in the short term. The index is overall assessed as technically negative for the long term.

Recommendation one to six quarters: Negative