A Short-Term Buying Opportunity for the Stoxx Index

The Stoxx Europe 50 index is currently in a corrective downtrend, attempting to reach the daily buying zone near 5720.

We anticipate a decline to the daily buying zone and the overlapping buying zones on the 4-hour chart, as illustrated on the chart.

Expected Targets

If the index falls to the overlapping buying zones on the 4-hour chart near 5680, we expect to see it rise to the targets shown on the chart near 5750 and 5830, respectively.

However, if the index breaks below these buying zones and closes below them on a 4-hour candle, the anticipated rise will be invalidated, and we may see a continuation of the decline towards the next buying zone near 5439.