However, the consolidation of recent weeks has allowed certain stock markets in the Old Continent, for their part, to get closer to the supports they faced last week, such as the lows of the month of August marked by EuroStoxx 50 in its Total Return SX5R version (which takes into account the distribution of dividends) in the 10,900 points or like the 18,900 points of the German DAX 40, the other major index that Ecotrader recommends monitoring.
In fact, the EuroStoxx 50 Total Return has at times in recent days been close to 11,050 points, or just 1.3% of this key support.
“In this context, it would be ideal for the market to threaten to cross this level and then execute a reversal, a technical figure that usually marks significant turning points, especially if a bullish gap appears in this turning point,” explains the expert in his weekly . strategic commentary, while ensuring that, if this occurs, “we would be faced with an unbeatable opportunity to position ourselves upwards“The risk of purchasing in this area would be minimal compared to the potential reward.”
Strategic technical analysis of the EuroStoxx 50 Total Return
And that’s it, andThe first upside target would be the annual highs, located at 10%. “Overcoming it would open the door to further increases, possibly of at least another 10%, so in total we could talk about potential increases of between 10% and 20% if support from the 10,900 points remain firm“, sentence.
In other words, the key to a possible Christmas rally lies in the hands of the EuroStoxx 50 Total Return’s 10,900-point support. It will depend on him if we close the year with optimism or we are facing a more difficult start to 2025.
