Euro Stoxx 50 reversal or 'sell the top'
EU50 recorded yet another several consecutive days of gains. The price has crossed upper limit of parallel increasing channel with RSI crossing level of 73.
Similar situation occurred in Sep this year whereas RSI remained slightly below 70 yet the index recorded a visible fall to roughly 0.5 level fib retracement.
Current fibo retracement indicate possible fall to 4272 (0.236) and 4213 (0.382) (75 and 134 respectively from 4347 index level of today). With a very narrow SL of 4367 (20 points from 4347) this represents a 3,75:1 reward/risk ratio.
At the same day (Mon 08/11) we see falling Nasdaq100 and SP500 recording small gains with VIX raising over 6% and US yields increasing as well.
EU50
Similar situation occurred in Sep this year whereas RSI remained slightly below 70 yet the index recorded a visible fall to roughly 0.5 level fib retracement.
Current fibo retracement indicate possible fall to 4272 (0.236) and 4213 (0.382) (75 and 134 respectively from 4347 index level of today). With a very narrow SL of 4367 (20 points from 4347) this represents a 3,75:1 reward/risk ratio.
At the same day (Mon 08/11) we see falling Nasdaq100 and SP500 recording small gains with VIX raising over 6% and US yields increasing as well.
EU50