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The EUROSTOXX 50 has started the week on soft footing after the index ended sharply higher last week, however, some positive news from Airbus could soon help to give the index a boost.
At the Paris air show Indian airline IndiGo made a record order for 500 planes from Airbus, in an indication of the extreme demand coming from the world’s most-populous nation.
The order surpasses the previous record order of 470 planes by Air India previously this year. The order also underscored the size, power, and the future potential of the Indian consumer market for aviation.
The EURO STOXX 50 is worth watching closely as it can get the overall market mood in Europe. Plus, it is heavily speculated on by investors across Europe. A strong rise in Airbus stock makes it likely to be affected positively or negatively.
Basically, the EURO50 a stock index of Eurozone stocks designed by STOXX, an index provider owned by Deutsche Börse Group. The index is composed of 50 stocks from 11 countries in the Eurozone.
The EURO STOXX 50 represents Eurozone blue-chip companies considered leaders in their respective sectors. The EURO STOXX 50 Index is derived from the 19 EURO STOXX regional Super sector indices.
As of April 2021, the most countries with most companies represented are France, representing 36.6% of all total assets and Germany at 33.2%.
High levels of bearish sentiment are still being seen towards the EURO50, with some 73 percent of traders currently holding a negative view towards the European stock composite.
This large bearish sentiment bias probably hints that we are close to a major reversal to the upside and more gains are likely.
EURO50 Short-Term Technical Analysis
The EURO50 still looks pretty bullish on the lower time frames despite the big pullback last Friday from the 4,400 level as European stocks took their cue from slowdown fears in Europe.
According to technical analysis we could be see more upside above the 4,400 level, and especially if a new high is made this week above the former weekly high then the 4,500 level looks likely.
EURO50 Medium-Term Technical Analysis
The EURO50 is likely to head higher as it tests towards its Ichimoku base line on the daily time frame. A break under the Ichimoku Cloud is also considered very bearish over the medium-term.
It should be noted that the Ichimoku Cloud is currently thick, which indicates that the trend is still strong. I would suggest new highs towards 4,800-5,000 are coming this summer based on the daily chart.
