Macro: Sandcastle economics
Invest wisely in Q3 2024: Discover SaxoStrats' insights on navigating a stable yet fragile global economy.
Technical Analyst, Saxo Bank
EuroStoxx50 jumped higher yesterday reaching 0.786 Fibonacci extension of the November-December uptrend at 4,852
RSI is close to cancelling its Divergence (imbalance)
EuroStoxx50 could be on its way to the 1.00 extension at 4,980 but could spike up to 5K in an exhaustive move.
To demolish this bullish scenario a close below 4,674 is needed. First warning of a correction/trend reversal would be if the Index is closing below the rising trendline followed by a close of that gap created yesterday i.e., a close below 4,775
An RSI close below its lower rising trendline could be first warning of the corrective reversal scenario to play out
EU50 cfd levels. A close below 4,742 could fuel a sell-off down to around 4,670-4,610
DAX index gapped higher to the 1.618 projection at 17,410. Despite RSI divergence there could be further uptrend in coming week(s) for the leading German Index. A move to 2.0 projection at 17,661 is in the cards.
To demolish the bullish scenario a close below 17,148 i.e., a close of the gap is needed