Euro Stoxx 50

updated on 25-NOV-2019

From the 50 largest and most liquid stocks listed in Europe, here are the ones that stand out:

 

Ahold Delhaize

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Coming out of a cup and handle pattern, the price broke out of a resistance level in place since 1997! As long as the price can stay above this breakout area around 23, and derived from the cup and handle measured move, the stock could potentially reach 31.35.

 

Another stock that broke to all time highs is Deutsche Boerse

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The price retraced to the breakout area, confirming the old resistance as new support. As long as the stock can stay above 133, it has the potential to reach 155 based on Fibonacci projection discipline.

 

Next is Essilorluxottica

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Superb uptrend, followed by a consolidation period from May 2015 to August 2019. Mid August 2019, the price broke out to new highs, came back down to confirm the old resistance as new support around the 126 level and is now on its way to the next Fibonacci extension area just below 175.

 

Next, LVMH

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After a 6 years consolidation (2010-2016) the price is in an uptrend and needs to hold above its latest breakout area (388), to be on its way to the next Fibonacci projected levels near 425, 540 and 600.

 

same with Kering

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At best the stock can stay above the 520 area, with its next Fibonacci extension level just above 720.

 

The next stocks are in uptrend but currently trading right in-between support and resistance, therefore not offering a good risk/reward ratio but good to keep an eye on them:

 

Air Liquide

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ASML

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Safran

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SAP

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L'Oreal, after reaching its Fibonacci projected level, could be starting a consolidation until the price can get above the 264.50 area.

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and finally Amadeus IT group, which needs to breakout of its consolidation phase, here defined by a symmetrical triangle. Triangles are known to be continuation pattern, therefore the price should continue in the direction of the prevailing trend, i.e. up. Until the price can breakout and confirm the aforementioned, it is still in consolidation and at risk of a breakdown/reversal (least expected scenario).

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