$Europe Stock Market Monthly Update: Euro, Germany, Sweden

$Europe Stock Market Monthly Update: Euro, Germany, Sweden.

Europe is represented by various countries including Germany, France and Italy and these countries, along with 16 others have adopted the Euro currency.  We will analyse the The Stocxx 50 ($SX5E-STX) chart is the index which best represents these countries. We will also look at the German DAX30 ($DAX-XET) and Stockholm 30 index ($OMXS30-OMX)

Note:  All charts will be provided by eSignal.

STX Stocxx 50 ($SX5E-STX)

Below is the Monthly chart.

Price continues to remain in it’s consolidation pattern between 2123 and 3840.22. The top of the consolidation pattern resistance was established in 2006 and we have tested it 3 time already with the last time being back in April 2015.  Price has not retested the bottom of the consolidation since 2015 but has shown signs of bullishness by bouncing of the middle of the consolidation pattern. Price is approaching the resistance level slowly with May opening and closing at the same level.  We now also have a IMTF™ resistance above price at 3575.61.  June has to close above this level if it is the reach the top of the consolidation pattern, however, with KijunSen support pointing the other way we will have to watch this closely.

Below is the weekly time frame

The weekly time frame continues it’s bullish trend. The breakout triggered on 6th March 2017.  Price nearly retested the Tenkensen but with a series of IMTF™ supports moving up we have some good signs of bullishness.

Below is the daily time frame

The Daily chart is in confliction with the weekly.  Price has just been stopped out if its bullish trend and now is below IMTF™ resistances of 3578.28. We will have to break these and momentum will have to break above price before we can go bullish.  Will will then have a good chance of breaking the resistance of 3661.29.

 

German DAX ($DAX-XET)

Below is the Monthly chart.

The monthly chart continues its bullish trend since late 2012.  Since then it has not gone through a major pull back but continues to make new highs.  We broke the high of 12351.59 and heading to to go to the next resistance at 13352.30.

Below is the weekly time frame:

The weekly shows price changed sentiment to be bullish in August 2016.   It then consolidated until Dec 2016 where it broke out. It hit a resistance of 12357 and underwent a minor pullback. However, with momentum strong, price bounced of the TenkenSen and is registering new high.

Below is the daily time frame:

The daily is just undergoing a medium pullback with the Tenkensen at the Kijunsen level.  With momentum bullish there is a change that price will bounce of this level.  This could be a good opportunity to look for short term bullish opportunities.

A quick scan of the emails shows a 5 timeframe bullish opportunity for Deutsche Boerse (DB1.D-CHX).  The email alert is blow.

And the 120m chart is below.

if price gets the the Senko span B level of 91.15 which is also an IMTF™ support we could enter a pullback trade with a target of 93.10.

Sweden ($OMXS30-OMX) 

Below is the monthly chart.

The monthly chart is in a very strong bullish trend since late 2010.   Price when through two major pullbacks, one in 2011 and another in 2016. Since then, it broke the resistance of 1480 and is heading to retest the high of 1700. The key is what will happen this month. With momentum neutral and the Kijunsen pointing down will price continue to go to the next resistance at 1700 or decided to take a “rest” or “reverse”?

Below is the weekly time frame:

The weekly time frame changed to a bullish sentiment in December 2016 and started the bullish trend right away.  It also has yet to go through a medium pull back and it just broke the resistance of 1638.5 from summer of 2015.  There is a good chance of hitting the 1700 target.

Below is the daily time frame:

The daily has been bullish since late 2016 and went through a major pullback in April.  Price quickly broke bullish in the month of May and made a medium pullback in mid-May.  Price is currently above the Tenkensen and has an IMTF™ support at 1631.79 helping it remain bullish.

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About the Author Yat Patel