• 855 days Will The ECB Continue To Hike Rates?
  • 856 days Forbes: Aramco Remains Largest Company In The Middle East
  • 857 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,257 days Could Crypto Overtake Traditional Investment?
  • 1,262 days Americans Still Quitting Jobs At Record Pace
  • 1,264 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,267 days Is The Dollar Too Strong?
  • 1,267 days Big Tech Disappoints Investors on Earnings Calls
  • 1,268 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,270 days China Is Quietly Trying To Distance Itself From Russia
  • 1,270 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,274 days Crypto Investors Won Big In 2021
  • 1,274 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,275 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,277 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,278 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,281 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,282 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,282 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,284 days Are NFTs About To Take Over Gaming?
  1. Home
  2. Markets
  3. Other

STOXX 600 Banks Index: Freaking Weak

Monthly time frame:

  • This is an ugly chart
  • The Stoxx 600 Banks Index has not even been able to reclaim the 0.382 retracement of crash from the 2007 Top
  • Price is now in no man's land with the risk of a retest of the 2011 low at 114 if a bottom is not established soon

Stoxx 600 Monthly Chart
Larger Image

  • From the 2015 high we can count a 3-wave down leg
  • If the resistance located at R1 = 157.34 is reclaimed there is a "pocket of air" until the following resistance R2 = 174

Stoxx 600 Monthly Zoom Chart
Larger Image

  • Monthly oscillators are oversold (RSI and Stochastic) but the MACD has a bearish signal cross in force and in addition is has lost the zero line. Hence a potential rebound will be most likely countertrend as long as the bearish signal cross is not cancelled

Stoxx 600 Monthly Momentum Chart
Larger Image

Weekly time frame:

  • The week ended with a Harami. This pattern in prolonged down trend can establish a turning point.
  • Even if from the July 2015 top we have a 3-wave down leg, price is below all major moving averages; hence a rebound should be considered a countertrend move. However the Stoxx 600 Banks Index could achieve a 10% rebound towards the R1 = 157
  • A trend reversal would require to breach the trend line from the 2015 top and reclaim R2 = 174

Stoxx 600 Weekly Chart
Larger Image

Daily time frame:

  • The pattern from the July 2015 top is corrective. So far we have a 3-wave down leg, and the third wave down can be considered a thrust following a Triangle completed on December 12. The issue is if the third wave is done. If it were done a countertrend wave (2) or (X) should achieve T1 = 155 -156 (0.382 retracement and horizontal resistance) or even T2 = 162 - 163 (50 dma and 0.5 retracement)

Stoxx 600 Daily Chart
Larger Image

  • If a short-term bottom is in place last Monday's gap at 137.80 must not be closed, in which case odds would favor at least another up leg with target at T1

Stoxx 600 Daily Zoom Chart
Larger Image

  • Daily oscillators are aligned with the scenario of a larger rebound although we shall see if the RSI can breach overhead resistance (Trend line from April 2015)

Stoxx 600 Daily Momentum Chart
Larger Image

 

Back to homepage

Leave a comment

Leave a comment