Euro Stoxx Analysis

Euro Stoxx Economic Analysis 

European stocks rose at the start of trading on Thursday, with the Stoxx 50 index gaining 1% after three consecutive sessions of losses.

However, the index reversed course and declined again, along with other European stocks, particularly the German DAX.

Meanwhile, markets continued to monitor developments in the Middle East following the latest cross-border attacks overnight.

As oil prices fell, investors remained concerned that any escalation could revive inflationary pressures.

Euro Stoxx Technical Analysis 

The index reversed course at the start of the week after reaching the upper boundary of the daily rising wedge pattern near 6440 points, and is currently trading around 6250 points.

Today, the index is attempting to find support at the lower boundary of the wedge pattern near 6120 points, influenced by several bearish divergences on the daily MACD indicator.

If it breaks down and closes a daily candle below it, we then expect further declines towards the 6000 level, then 5750, and finally the 5500 level.