STOXX50 Expanding triangle consolidationCurrent Trend: Bullish (Long-term Uptrend)
Pattern Formation: Expanding Triangle (Sideways Consolidation)
Key Support Level: 5283
Key Resistance Levels: 5470, 5527, 5570
Bullish Scenario:
The STOXX 50 remains within a long-term uptrend, with recent price action consolidating in an expanding triangle pattern.
A pullback from current levels could find support at 5283, a key swing low.
A strong bullish bounce from 5283 would confirm the continuation of the uptrend, targeting 5400 as the next resistance level.
A breakout above 5400 could lead to further upside momentum towards 5525, followed by 5570 over the longer term.
Bearish Scenario:
A confirmed breakdown below 5283 with a daily close below this level would invalidate the bullish outlook.
In this scenario, increased selling pressure could push prices lower, with 5173 as the next key support level.
A further decline below 5173 could open the door for an extended retracement towards 5067.
Conclusion:
The STOXX 50 remains in a bullish trend but is consolidating within an expanding triangle. Holding above 5283 keeps the upside bias intact, with potential targets at 5400 and beyond. However, a breakdown below 5283 would shift the sentiment to bearish, signaling further downside risk towards 5173 and 5067. Traders should monitor price action around the 5283 level for confirmation of either scenario.
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