Review and dynamics
The index EuroStoxx50 has been growing in the last three weeks. Now the index has approached resistance level of 3110.0 (Fibonacci 50.0% after the decrease since December 2015). The upper limit of the ascending channel on the daily chart is just above this level.
Last week, the index EuroStoxx50 has broken out the key resistance level of 3030.0 (ЕМА200 on the daily chart) and continues to rise.
On the weekly chart the index has broken the upper limit of the descending channel at the level of 3080.0.
On the weekly chart the indicators OsMA and Stochastic give signals for long positions; on 4- hour and daily charts the indi9cators suggest to open short positions.
It is likely that the price will undergo downward correction to support levels of 3080.0 and 3050.0.
If the decline continues the price may breakdown the levels of 3030.0 and 3010.0 and continue to decline to 2935.0 (the lower line of the ascending channel on the daily chart) and 2890.0 (Fibonacci 23.6%).
However, if Mario Draghi confirms the plans to expand QE program in Eurozone, the index may continue to rise with the nearest targets of 3110.0 and 3150.0 (highs of April).
In case of the uptrend the targets will be at the level of 3200.0 (Fibonacci 61.8%), which coincides with the moving averages ЕМА200 and ЕМА144 on the weekly chart.
Support levels: 3080.0, 3030.0, 3010.0, 2978.0, 2935.0, 2890.0, 2845.0 and 2700.0.
Resistance levels: 3110.0, 3150.0 and 3200.0.
Sell Stop: 3085.0. Stop-Loss: 3110.0. Take-Profit: 3030.0, 3010.0, 2978.0, 2935.0 and 2890.0.
Buy Stop: 3110.0. Stop-Loss: 3085.0. Take-Profit: 3150.0 and 3200.0.
Key resistance level of 3110.0
Breakout of the level of 3030.0