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

$Europe Stock Market Monthly Update: Spain, France, UK.  With the French elections underway and the UK officially triggering Article 50 and then calling a general election Europe continues to go through a transformation.

Europe is represented by various countries from Germany, France, Spain, and we will analyse the index that represents the 19 counties that have adopted the Euro.  We will also look at the France CAC40 ($PX1-EEB) and FTSE 100 ($UKX-FTSE), and IBEX ($IBC-MAC)

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.

Price continues to remain in it’s 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 with the last time being back in April 2015.  Since then, price didn’t go back and retest the low of 2122.92 but rather it tested the middle of the consolidation pattern.  This is a bullish sign, price is also slowly approaching the resistance level with the Tenkensen crossing over the KijunSen.  Another bullish sign.

Below is the weekly time frame

The weekly time frame continues it’s bullish trend. The breakout triggered on 6th March 2017.  Price bounced of the resistance of 3519.14 but has just broken and closed above it.

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 3519.14 as long as the support at 3428.73 holds.

French CAC40 ($PX1-EEB) 

Below is the monthly chart.

Price has been in a consolidation pattern between 3973 and 5151.86 since 2013.  This month we just broke and closed above the resistance level.

Below is the weekly time frame:

The weekly time frame broke out started its bullish trend in March.  It made a minor pullback in mid-April but then immediately gapped above 5151.56 and 5240.27.

Below is the daily time frame:

The daily remains bullish however, the bullish breakout on March 1, 2017 ended on April 18th 2017.  Price immediately gapped above the resistances of 5151.56 and 5240.27 and now has an IMTF™ day/swing resistance of 5279.58 and a IMTF™ swing/long support at 5228.

UK FTSE 100 ($UKX-FTSE)

Below is the monthly chart:

After “BRIEXIT”, the UK market took off making all time highs.  The bullish trend broke out March but in April price made a minor pullback.

Below is the weekly time frame:

The weekly time frame is made a medium pullback although price didn’t make it to the KijunSen it is bounced of the support of 7118 and is slowly going it up.
Below is the daily time frame:

 

The daily time frame is choppy.  April saw a change in sentiment.  Price immediately broke below the cloud and setup a bearish trade.  Bearish trader had a pullback trade opportunity during the last week of April.  However, we are in a consolidation pattern has developed between 7101.61 and 7377.41 and until we break this we will be cautious with long term trades.  If we break the support, our probability to reach the support of 7055.76.

Spanish IBEX ($IBC-MAC)

Below is the monthly chart.

Since September 2008 IBEX has been consolidating between 8527.98 and 11388.56. Prince had an opportunity to break bearish however instead price re-entered the consolidation pattern. Price is now above the cloud and the TenkenSen is about to cross above the KijunSen showing signs of bullishness.

Below is the weekly chart.

The weekly chart started it’s bullish trend in March. It has yet to go through a pullback and the next resistance is the top of the consolidation pattern which is 11388.56.

Below is the daily chart

The Daily chart is also bullish.  Price just broke above the resistance of 10556.24 and if price breaks above the IMTF™ resistances of 10955.92 the next resistance is 11388.56.

 

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About the Author Yat Patel