EUROSTOXX50: The Bulls Are Back

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European stocks, led by the EuroStoxx 50, could end the week in positive territory despite a volatile start marked by significant declines. The observed recovery has alleviated recession fears and stabilized the markets, although the EuroStoxx 50 remains in a consolidation phase that has lasted for four months. Recent drops in the index present a buying opportunity, especially if key support levels around 4,396 points are reached.

In the fixed income market, strong purchases are anticipated today, with U.S. bond yields returning to around 4% after dipping below 3.8%. Today, inflation and trade balance data from several Eurozone countries will be released. Notably, the German indicator may suggest an expected increase in inflation. A slight improvement is also anticipated in the production of some Eurozone countries.

Looking at the chart, the market appears to be trying to return to the main trading zone marked by the Point of Control (POC) around 4,984 points, roughly 300 points above the current trading area. If the support at 4,552 points holds, it could signal a recovery in the Eurozone, as represented by this index. The RSI currently shows no excessive strength but does indicate a move back towards the mean with 40.44%, suggesting buyers are returning since August 5th.

Ion Jauregui – ActivTrades Analyst





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