As the Greek debacle continues we have seen a near-term change in trend for European equities at record highs.
As the Greek debacle continues we have seen a near-term change in trend for European equities at record highs. ESTX50 appears interesting from a technical perspective as it has broken to the downside of the bullish channel and come very close to testing the original breakout line.
As this is only focussing on the near-term change in trend this is not attempting to pick a major high. However we may be able to capitalise on a deeper retracement towards 3527, on lower timeframes, to take advantage of the bearish momentum for the near-term.
Currently below the 38.2% retracement there is also potential for price to creep up the trendline towards the 50% or 61.8%. However due to the bearishness of yesterday’s close (and elongated bearish candle which closed for a 5th consecutive down day) I suspect the shallower retracement is a higher probability scenario.
With German ZEW data out tonight then soft numbers should push it down initially. We may require further data on Thursday from Eurozone as it (along with Germany and France, present PMI data.