$Europe Stock Market Monthly Update: Germany, France, UK. Europe is going through a transformation and is represented by various countries from Germany, France, Italy, etc. We will analyze the $SX5E-STX, Stocxx 50, Germany DAX ($DAX-XET), France CAC40 ($PX1-EEB) , FTSE 100 ($UKX-FTSE).
Note: All charts will be provided by eSignal.
STX Stocxx 50 ($SX5E-STX)
The STX Stocxx 50 is the index that represents the 19 counties that have adopted the Euro. Below is the Monthly chart.
Since 2008, price has been enter an “ugly” consolidation pattern between 2122.92 and 3838.21. The top of the consolidation pattern resistance was established in 2006 and we have tested it 3 time already. The last time it was tested April 2015. After testing this resistance again, price didn’t go back and retest the low. Instead, it has been testing the middle of the consolidation pattern. This is a bullish sign. In 2016, the support at 3047.92 finally held and price has been moving up slowly.
Below is the weekly time frame:
The weekly time frame is in a bullish trend where the breakout triggered March 6, 2017. Price is slowly heading towards the next resistance of 3519.14.
Below is the daily time frame:
The Daily chart shows we are in a very strong bullish trend with a high probability of reaching the resistance at 3519.14 as long as the support at 3428.73 holds.
German DAX ($DAX-XET)
Below is the Monthly chart.
The monthly chart is in a very strong bullish trend that late 2012. Since 2012, the bullish trend has not gone through a major pull back at all. Now, at the end of the Q1CY2017, we are retesting the all time high.
Below is the weekly time frame:
The weekly shows price changed sentiment to be bullish in August 2016. It then consolidated until Dec 2016. At that time, it broke out and has not even gone through a medium pull back at all. It shows that the trend is about to retest the all time high with a strong bullish trend.
Below is the daily time frame:
The daily is in a strong bullish trend. It has a high probability of reaching the next resistance of 12351.59 as long as the support at 12007.21 holds.
French CAC40 ($PX1-EEB)
Below is the monthly chart.
Since changing to a bullish sentiment late 2013, price has been in an ugly consolidation pattern between 3973 and 5151.86. We are now close to testing the top of the consolidation pattern.
Below is the weekly time frame:
The weekly time frame changed to a bullish sentiment December 2016 and started the bullish trend right away. It also has yet to go through a medium pull back and is approaching the resistance of 5151.86 fast.
Below is the daily time frame:
The daily broke out bullish March 1, 2017 and slowly been going up. There is a high probability of reaching the resistance at 5151.86 as long as the support at 5008.08 holds. It will be interesting to see where the market will be when the French elections occur.
UK FTSE 100 ($UKX-FTSE)
Below is the monthly chart:
After “BRIEXIT”, the UK market took off and broke the all time high and continuing to go higher.
Below is the weekly time frame:
The weekly time frame is slowly going it up. It seems it breaks out and then consolidates and repeats this pattern. Price is slowly moving up to the resistance but making new high’s over and over.
Below is the daily time frame:
The daily time frame does not look good for the bulls. The sentiment is bullish. However, a small consolidation pattern has developed between 7297.15 and 7377.41. If we break the resistance, our probability to reach the resistance of 7491.86 will be high. If we break the support then we will have a high probability of going back to 7055.76.
Trade Opportunity
Below is the scan results for all the stocks in the UK FTSE that are completely bullish:
In looking at the opportunities for the scan, we are going to pick $SMWH-LON for a trade setup. The reason is that it also came up as a $Ichimoku 5 time frame buy on our email alerts. Here is the email alert:
The 240m chart shows the chart setup for a pull back trade for a 3:1 reward/risk to retest the last pivot high. Once we get to preserve mode, 50%/75% of positions can be taken off and the stop can be tightened up.
If you would like to learn how to trade like an institutional trader or learn more about our multi-timeframe email alerts, go to www.ichimokutrade.com or email us at info@eiicapital.com
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