October 19, 2021

Sports Talk Line

Daily Sports News

Europe Stock Markets Want To End A Worrying Week With Good Taste

2 min read

The stock markets of Europe want to end the last day of the week with a positive sign to ensure that their main selective remain above their first supports . A task that, however, will not prevent the European indices from ending on Friday with a negative weekly balance and after having displayed potentially bearish monthly candle lines, something that is not positive at all.

“The consolidation could turn into a correction if the supports that have been put to the test throughout the week end up losing ,” says Joan Cabrero, technical analyst and adviser at Ecotrader .

The level to watch in the case of the Ibex 35 is 8,800 points . If it loses 8,800 points, everything would indicate that we would at least see a fall towards 8,500 points , which would mean a correction identical to the one we saw in January, which took the Spanish selective from 8,440 to 7,713 points .

In the case of the main European benchmark, the EuroStoxx 50 , the level to watch is 4,040-4,050 points . “The loss of this level would imply seeing a correction towards the May lows at 3,855-3,785 points , the scope of which would be magnificent to buy the bag again with a medium-term orientation,” says Cabrero.

European stocks are not moving away from their key supports
For readers who want more: Ecotrader, the premium investment strategy portal

As with the Spanish index, a fall of the EuroStoxx 50 to that support range would imply a correction of 8-10% from the last maximum marked at 4,165 points and “the reach of a potential turning point so important in contexts bulls as strong as the current one, such as the 23.60% Fibonacci adjustment of the entire last big rise from the October lows, “the analyst clarifies.

China and the euro down
The sweet end of the week in Europe contrasts with that seen today in the Chinese stock market, which differs from the slightly upward trend of the rest of selectives on the Asian continent and registers decreases of more than 1.5%.

In the midst of the communist party’s centennial celebration, China’s stock markets are having one of their worst sessions in recent months. The CSI 300 is already more than 2%, something that has not been seen since mid-March. With this decrease, the weekly balance of the Shanghai selective shows losses close to 3% in what is also its worst week since the beginning of March.

Full of falls for the euro / dollar in the week. The pair between both currencies accumulates its fifth consecutive session of falls , which leads it to close the week with a negative background of 0.7%.

With this decline, the cross between the two currencies registers its fourth week down from the last five and is approaching the support level of $ 1.1770 per euro , “which is the tangency with the base of the triangle that could be limiting the consolidation of the last months “, assures the technical analyst and Ecotrader advisor . “The situation would get complicated if it loses 1.17 and above all 1.16 support “, warns the expert.

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