Cross referencing the EUROSTOXX 50 and watching the development of the ADX that turned yesterday to indicated a sideways consolidation phase it seems likely that the current correction is not over despite the hammer candle followed by the bullish engulfing candle a few days later both after touching the SMA50 and the confirming bullish candle yesterday that was upper bound by the SMA20.
All 3 candles have not been mirrored in the EUROSTOXX 50 and and the SMA50 functions as resistance instead of support. The next support for the EUROSTOXX 50 is the SMA200.
Since these indexes are highly correlated and the signals are mixed, it's advised to wait for confirmation that the current uptrend is not the (finished?) corrective wave B of a major 3 wave zigzag correction that would be followed by a leg C downwards to the SMA200 in confirmation of the EUROSTOXX 50 analysis.
All 3 candles have not been mirrored in the EUROSTOXX 50 and and the SMA50 functions as resistance instead of support. The next support for the EUROSTOXX 50 is the SMA200.
Since these indexes are highly correlated and the signals are mixed, it's advised to wait for confirmation that the current uptrend is not the (finished?) corrective wave B of a major 3 wave zigzag correction that would be followed by a leg C downwards to the SMA200 in confirmation of the EUROSTOXX 50 analysis.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.