Technical Update - EuroStoxx50/EU50 and DAX/GER40 could be resuming uptrend after bounce

• A close below support at 4,976 for the EuroStoxx 50 could prove to be a false break. A daily close above 5,053 will confirm this.
• The EU50 CFD has closed above the key support at 4,966 twice and could resume its uptrend with a close above 5,052

   

• The DAX's bounce from key support at 17,900 suggests the uptrend could resume. A crucial factor will be whether it can negate the top and reversal pattern, with resistance at 18,326 being pivotal
• For the GER40 CFD, the key resistance is at 18,328, and key support is at 17,862

The EuroStoxx50 Index closed Thursday below the support level at around 4,976, suggesting a possible confirmation of a corrective downtrend.
However, today's bounce indicates the potential for this to be a false break. If the Index closes above 5,053 and the RSI closes back above the 60 threshold, it would support a scenario where the recent break was misleading and an uptrend might resume.

Despite the positive signals, the bearish engulfing top and reversal pattern remains intact and a concern. This pattern will stay valid until there is a daily close above 5,122. A close above 5,053 would be a strong indication that the top and reversal pattern wiill be challenged, suggesting a potential shift in momentum.

Should the EuroStoxx50 Index drop again and close below 4,976, it is likely to trigger a sell-off towards the support level at around 4,888.