$Europe Stock Market Monthly Update: Germany, France, UK

$Europe Stock Market Monthly Update: Germany, France, UK.   Europe is going through a transformation and is represented by various countries from Germany, France, Italy, etc.    We will analyze the $SX5E-STX, Stocxx 50,  Germany DAX ($DAX-XET), France CAC40 ($PX1-EEB) , FTSE 100 ($UKX-FTSE).

Note:  All charts will be provided by eSignal.

STX Stocxx 50 ($SX5E-STX)

The STX Stocxx 50 is the index that represents the 19 counties that have adopted the Euro.   Below is the Monthly chart.

Since 2008, price has been enter an “ugly” consolidation pattern between 2122.92 and 3838.21.    The top of the consolidation pattern resistance was established in 2006 and we have tested it 3 time already.    The last time it was tested April 2015.  After testing this resistance again, price didn’t go back and retest the low.   Instead, it has been testing the middle of the consolidation pattern.    This is a bullish sign.

Since last month update, the support has moved up to 3265.86 now.

Below is the weekly time frame:

The weekly time frame is in a bullish trend where the breakout triggered March 6, 2017.  The resistance of 3519.14 was broken this month and next resistance is at 3679.14.

Below is the daily time frame:

The Daily chart shows we are in a very strong bullish trend with a high probability of reaching the resistance at 3679.14 as long as the support at 3500 holds.

German DAX ($DAX-XET)

Below is the Monthly chart.

The monthly chart is in a very strong bullish trend that late 2012.   Since 2012, the bullish trend has not gone through a major pull back at all.    We just retested the high and closed above it now.   The key is what will happen this month.   Will price continue to go to the next resistance at 13352.30 or decided to take a “rest” or “reverse”?

Below is the weekly time frame:

 

The weekly shows price changed sentiment to be bullish in August 2016.   It then consolidated until Dec 2016.   At that time, it broke out and has not even gone through a medium pull back at all.

Now, we have broke the major resistance and registering new high.   Momentum is still strong on the weekly time frame with no site of a major pull back yet.  Only minor pull back have occurred since Dec 2016.

Below is the daily time frame:

The daily is in a strong bullish trend.  It has a high probability of reaching the next resistance of 13352.31 as long as the support at 12351.59 holds.

French CAC40 ($PX1-EEB) 

Below is the monthly chart.

Since changing to a bullish sentiment late 2013, price has been in an ugly consolidation pattern between 3973 and 5151.86.   We now have broken to top of the consolidation pattern and now we need to see price follow through holding the support at 5151.86.  Next major resistance is 5715.

Below is the weekly time frame:

The weekly time frame changed to a bullish sentiment December 2016 and started the bullish trend right away.  It also has yet to go through a medium pull back and we testing the high from summer of 2016.  The elections broke the major resistance at 5151.

Below is the daily time frame:

The daily broke out bullish March 1, 2017 and slowly been going up.  With the elections, price broke the resistance at 5132.81.    As long as this support holds, price will continue to move up….

UK FTSE 100 ($UKX-FTSE)

Below is the monthly chart:

After “BRIEXIT”, the UK market took off and broke the all time high and continuing to go higher.  Last resistance it broke was 7005 which is major support.

Below is the weekly time frame:

The weekly time frame is showing some weakness in the bullish trend.  A resistance at 7329.00 has developed.    Until the support at 7005 is broken, no major pull back can occur.

The daily timeframe confirms the weakness in the bullish trend since the sentiment is bearish.   As long as the support at 7005 holds, the daily time frame can not enter a bearish trend.

Trade Opportunity

Below is the scan results for all the stocks in the $Europe that are completely bullish:

In this list, we look at the multiple time frame setup email and we found IFX.D-CHX Infineon Technologies.   Here is the 6 time frame $Ichimoku email alert.

The lowest swing trading time frame is the 120m so we are going to setup a trade for this time frame.

The chart shows black squares for a pull back trade but it is taking too long.  As a result, we are setting up a breakout trade with entry at 19.25, initial stop at 18.63, and preserve mode at 19.87.   This will give us a 1:1 reward/risk at the setup phase.

If you would like to learn how to trade like an institutional trader or learn more about our multi-timeframe email alerts, go to www.ichimokutrade.com or email us at info@eiicapital.com

EDUCATIONAL USE. Commodity Futures Trading Commission, Forex, Futures, Equity and Options Trading has large potential rewards, but also has large potential risk and may not be suitable for everyone. You must be aware of the risks and be willing to accept them in order to invest in these markets. Do not trade with money you can not afford to lose. This is neither a solicitation nor an offer to Buy/Sell. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this document. The past performance of any trading system or methodology is not necessarily indicative of future results. All information provided on the Blog is for educational purpose.

About the Author Manesh Patel