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European stocks gain after ECB hints at further stimulus

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 21, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Córdoba) - European stocks bounced back on renewed hopes of additional easing coming from the European Central Bank, after Mario Draghi said that the current economic policy will be reviewed next March, and stimulus could be extended, if needed.

    The German DAX closed 1.94% higher at 9,574.16 and the daily chart shows that the index has managed to post a higher high and a higher low daily basis.

    DAX technical view

    “Technical indicators are aiming to recover from near oversold territory, suggesting the upward corrective movement may continue during the upcoming sessions. In the 4 hours chart, the index is now above a still bearish 20 SMA, the Momentum indicator is trying to advance above its 100 level, and the RSI indicator stands flat around 46, all of which limits chances of additional gains”, said Valeria Bednarik, chief analyst at FXStreet. “Should the benchmark extend beyond the high established at 9,669 the upside can look more constructive for this last of day of the week, while the picture will turn even more bullish on an extension beyond 9,760, Tuesday's high.”

    Support levels: 9,483 9,419 9,325. Resistance levels: 9,600 9,669 9,760.
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