Eurostoxx50: still waiting for the pullback
The european index is clearly in a new positive trend: it broke the red channel with high volumes after a MACD Divergence bouncing on the sma200.
Usually when it breaks a long channel it should have a pullback on it or near it with smaller volumes.
Instead this time it had lateral movement with low volumes under a long trend line (the gray one).
This can be read as a weak pullback meaning the beginning of a strong positive trend.
The trend is positive so we have to wait the lower part of the green channel to buy.
Now that is passed over the gray trend line we can risk a to buy a small lot with a stop just below the gray trend line or below the green channel, and wait the lower part of the channel and bigger confirmation from the volumes to put a bigger lot on the market.
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