The “risk-on” trading stance on stock markets has continued into the last week of November. Investors, encouraged by the enthusiasm surrounding successful vaccine developments, signs of the global economy recovering as well as speculation about more dovish monetary policies to come from the Fed, have sent stock prices higher on Monday.
Technically speaking, the configurations are starting to become really interesting on EU assets as most benchmarks are now challenging key resistance levels, the only ones before a likely price acceleration inside a bullish trend resurgence movement. The Stoxx-50 Index is currently challenging the 3,500pts level where a clearing could open the way to 3,610pts on a very short-term basis while the DMI indicator already shows a growing buying pressure inside an increasingly clear directional price action: the bulls seem to be back. However, a failure below the 3,500pts level could send the market back to 3,440pts, 3,400pts and even 3,355pts.
