The Euro Stoxx 50 has continued its multi-month advance, with the index approaching the 3,330 resistance level.
Europe 50 analysis shows that bulls may target the 3,700 level over the medium-term horizon.
Europe 50 medium-term price trend
The Europe 50 has continued to build on April and May’s strong monthly gains, with the index gaining over 5 per cent since the start of this month.
Stoxx technical analysis over the medium term shows that bulls may target the 3,700 level if the 3,450 resistance level is broken.
The daily time frame shows that bullish MACD price divergence is still present from the late-February 2020 decline.
According to the mentioned time frame, the bullish divergence extends upto the 3,700 resistance level.
The 3,450 level offers the only notable form of technical resistance prior to the 3,700 level.
Europe 50 short-term price trend
Stoxx technical analysis shows that the index is bullish while price trades above the 2,920 support level.
The four-hour time frame shows that a bearish head and shoulders pattern has been invalidated, following the break above the 3,050 level.
According to the size of the invalidated head and shoulders pattern, the index could move towards the 3,400 level over the short-term.
Traders should note that bearish MACD price divergence is also present on the four-hour time frame and extends down towards the 2,900 support area.
Europe 50 technical summary
Stoxx technical analysis shows that the index could rally towards the 3,400 over the short-term. The 3,700 level is seen as a possible medium-term bullish target.