Euro Stoxx 50, IBEX Price Forecasts: Bulls Eye Trend Higher
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Euro Stoxx 50, IBEX 35 Technical Analysis – Talking Points:
- European stocks declined Thursday, but overall trend higher remains
- Bulls look to reclaim psychological 3000 level on EU 50 Index
- IBEX 35 also looks higher, but the index lags its EU 50 counterpart
Euro Stoxx 50 Price Analysis:
European stocks closed out April on a sour note Thursday, with the Euro Stoxx 50 index declining over 3 percent. The downward price action follows grim economic data in the Eurozone along with new stimulus measures announced from the ECB. While the European index, representing the 50 largest companies in Europe, is down 24 percent year-to-date, April closed out a 4.35 percent gain in USD pricing, despite the weak finish Thursday.
Swinging from the March low, the index recently failed to clear its 50.0% retracement level. The trend higher remains intact, however. A move lower may find assistance from an earlier area of resistance, later turned support near the 38.2% retracement zone. Bulls will look to clear the psychological price level at 3000, and then the April high of 3050.19, set Thursday.
EU50 Price Chart (Daily Time Frame)
Source: IG Charts
IBEX 35 Price Analysis:
The IBEX-35 index also closed out April with a gain. However, the index lagged its EU 50 counterpart by just over 3 percentage points in USD terms. While an upward trend remains intact for the Spanish index, bulls appear less confident versus the EU 50 index. Still, two consecutive higher-lows since the March bottom at 5811.3, and the 23.6% fib level may offer assistance as price looks to set a new higher-high.
IBEX 35 Price Chart (Daily Time Frame)
Source: IG Charts
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