This week’s signals for DJ Euro Stoxx 50 are pointing to a temporary profit taking recovery and these are so far being confirmed, with Monday’s trading ending a sequence of lower daily highs, though with just modest gains, which have already been given up for an unchanged close.
So whether the improvement will continue today is unclear, as the bounce has attracted sellers from close to Thursday’s 3062 high, as well as to 3064, a 38% recovery to the losses posted since the last 2 week high.
However, the absence of a sell signal keeps Tuesday’s outlook cautiously positive, buying modestly on the open and then at 3126, yesterday’s low, with a stop loss at 3000. Targets are to 3050, 3062, Thursday’s high and 3094/99, last week’s high trade. 