Approaching Inflection Point, as Optimism Reigns

The Euro Stoxx 50-Price Analysis And News

• The Euro Stoxx 50 Is Approaching Inflection Point
• Market Optimism Reigns Supreme
• The unity of the EU Recovery Fund is Necessary to Extend Gains

The Euro Stoxx 50 Is Approaching Inflection Point

As optimism in the Market remains rife that the vaccine hopes-and French-German for the recovery of funds, the project continues to support the equity markets. In turn, the Euro Stoxx 50, has succeeded, in large part, stand on its recent gains above 2900. However, as risk sentiment remains relatively robust and the index is approaching an inflection point.

The unity of the EU Recovery Fund is Necessary to Extend Gains

Previously, the ftse failed to consolidate above 3000, having rejected the 50% fib at 3053, and thus, the index has maintained its range. While the weakness of the economic situation macro-economic, it is here to stay, the market of optimism that reign for the moment. That said, for a firm break above 3000 a, we suspect that the greater cohesion of the EU recovery fund, a proposal would be necessary. However, with the likes of Austria, a little skeptical about this proposal, which may be somewhat difficult to find, which, in turn, could see the Euro Stoxx 50 capped at the key resistance zone once again.

The Euro Stoxx 50-Price-Graph: A 1-Hour Time Frame

Source: IG

The Euro Stoxx 50, Price Chart, The Time Frame Of

— Written by Justin McQueen, a Market Analyst

Follow Justin on Twitter @JMcQueenFX