Momentum Reversal? Euro Stoxx 50’s Heads Down for the First Time in 3 Days

News Releases Impacting Euro Stoxx 50

  • Forecasted ECB Interest Rate Decision in Euro Area: 0.25%. The previous number: 0%. (Inf% difference between the two.)

The Hourly View for Euro Stoxx 50

  • Currently, SX5E’s price is up 2 (0.06%) from the hour prior.
  • This is the 2nd hour in a row Euro Stoxx 50 has seen its price head up.
  • If you’re a trend trader, consider that the strongest clear trend on the hourly chart exists on the 50 hour timeframe.
  • Price action traders may also wish to note that we see some doji and pin bar candlestick patterns on Euro Stoxx 50. Given that we see downtrend on the 20 hourly candle timeframe, and that such candlestick patterns often denote reversals, this may be worth noting.
  • The moving averages on the hourly timeframe suggest a bullishness in price, as the 20, 50, 100 and 200 are all in a bullish alignment — meaning the shorter durations are above the longer duration averages, implying a sound upward trend.

Euro Stoxx 50’s hourly price chart is shown below.

SX5E

The Daily View for Euro Stoxx 50

  • At the moment, SX5E’s price is down -2.2 (-0.06%) from the day prior.
  • This is a reversal of the price action on the previous day, in which price moved up.
  • As for the trend on the daily timeframe, we see the clearest trend on the 50 day timeframe.
  • Price action traders may also wish to note that we see a pin bar candlestick pattern on Euro Stoxx 50. Given that we see an uptrend on the 5 daily candle timeframe, and that such candlestick patterns often denote reversals, this may be worth noting.
  • Of note is that the 50 day changed directions on SX5E; it is now pointing down. The moving averages on the daily timeframe suggest a bearishness in price, as the 20, 50, 100 and 200 are all in a bearish alignment — meaning the shorter duration moving averages are below the longer duration averages, implying a stable downward trend.

Below is a daily price chart of Euro Stoxx 50.

SX5E