STOXX EUROPE 600 (EUR) : The 393-point wall is difficult to cross
The European Largium Index (without dividend reinvested) has just entered a consolidation phase after testing recent higher levels. As trade tensions intensify, profit taking is an obstacle to the 2019 performance, which nevertheless remains at 14%.
Over the last sliding month, the index took 3.5%, incorporating excellent monthly performance, such as Umicore, which posted a 29% increase in value, Casino (+28%) and the British NMC Health (+27%). At the same time, sectors that have been badly treated for months have recovered, such as the automotive and banking sectors.
Graphically, in daily data, the 393-point wall could not be crossed. The index came at the time of its last attempt to reach the level after a surge of 8%. A legitimate pause is therefore taking place. The downward target is located towards the convergence zone of the 50 and 100-day moving averages, currently around 382 points. A rapid recovery beyond the 393 points is needed to eliminate the downside risks, a scenario that is unlikely at this stage of the configuration
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