Estoxx50 - Is it a danger zone, or a support buy opportunity?
On the daily chart Estoxx50 Index is getting a bit dangerous for Bulls. DMI, Slow Stoch, MACD all bearish, and most importantly Price has touched the uptrend and arrived to Kumo support. Tenkan/Kijun weak bearish, Chikou Span below Price candles too. However a trend exists until it clearly breaks, and until the trend is so strong bullish, we have to suppose that Bulls will try to do everything at this support level to protect it.
Looking at multiple time frames, we can see critical days are ahead of this mkt: both 4 Hrs and 1 Hr is bearish, the counter trend is still intact. Watch if 1 Hr stays above previous low and prints a weak Tenkan/Kijun bullish cross at least. Price action today and tomorrow on the lower time frames will be very important to see if the Index can bottom out and turn up again, but still Bulls really need to do a lot more from here to push price above 3260 resistance level to stay in the game for longer.
Same is true for the Bears if they want to get in power. As I marked on the daily chart, it is not enough just to push Price below the Kumo. They also have to break the previus key support at 3140 to reverse the trend, otherwise the attempt will fail.
Looking at multiple time frames, we can see critical days are ahead of this mkt: both 4 Hrs and 1 Hr is bearish, the counter trend is still intact. Watch if 1 Hr stays above previous low and prints a weak Tenkan/Kijun bullish cross at least. Price action today and tomorrow on the lower time frames will be very important to see if the Index can bottom out and turn up again, but still Bulls really need to do a lot more from here to push price above 3260 resistance level to stay in the game for longer.
Same is true for the Bears if they want to get in power. As I marked on the daily chart, it is not enough just to push Price below the Kumo. They also have to break the previus key support at 3140 to reverse the trend, otherwise the attempt will fail.