Hello fellow traders. As our members know Indexes have been giving us a lot of good trading opportunities recently. One of them is Eurostoxx ( SX5E) Index from Group 2. In this technical blog we’re going to take a quick look at the Elliott Wave charts of SX5E published in members area of the website. As our members know, Eurostoxx is showing bullish impulsive sequences. Consequently we were calling for more strength in the Index, suggesting members to avoid selling it and keep on buying the dips in 3,7,11 swings. In further text we’re going to explain Elliott Wave Forecast and how we traded the instrument.
Eurostoxx 4 Hour Elliott Wave Analysis 5.4.2021
Eurostoxx is giving us pull back 4 red that has reached its equal legs area at 3928.4-3862.9. As our members know Blue Boxes are no enemy areas , giving us 85% chance to get a bounce. Strategy is buying the dips at blue box area. As Eurstoxx is bullish against the 3474.5 low , we expect to see 3 waves bounce at least from the blue box: 3928.4-3862.9 As soon as the price reach 50 Fibonacci Retracement against the ((x)) black peak, we should make long positions Risk Free. We will put SL at BE and book partial profits.
Eurstoxx found buyers and gave us nice reaction from the blue box. Bounce broke above 50 fibs against the connector so we put SL at BE and booked partial profits. Long trades are risk free at this stage. After bounce we got sharp decline lower , looking as 5 waves structure. We believe pull back is still in progress as 7 swings structure. The price structure is calling for more another swing down toward 3914-3837.8 area. At that zone we would like to be buyers again. Latest bounce we count as ((X)) connector. Strategy remains the same. We don’t recommend selling the index in any proposed pull back and favor the long side from the new blue box.
Eurostoxx 4 Hour Elliott Wave Analysis 5.20.2021
Eurstoxx found buyers again at the next set of equal legs: 3914-3837.8. We got nice rally that allowed us to make position risk free and to book some partial profits again. As far as the price stays above 3858.6 low, we believe 4 red pull back is completed there and next leg up can be in progress. Alternatively if the price breaks 3858.6 low , the index will open possibility for more short term weakness in near term.
Keep in mind that market is dynamic and presented view could have changed in the mean time. You can check most recent charts in the membership area of the site. Best instruments to trade are those having incomplete bullish or bearish swings sequences. We put them in Sequence Report and best among them are shown in the Live Trading Room.
Elliott Wave Forecast