Don't Ignore This Chart!

EuroTop 100 Index Ends Consolidations and Resumes Uptrend $EUR

 | 

The EuroTop 100 ($EUR) has further room to run after breaking out of a bullish continuation pattern. The price chart shows the index basing from March until November and then breaking above a major resistance zone in early December. After a 13.1% advance in nine weeks, the index paused with a five week consolidation (blue box). The breakout over the last few weeks signals an end to the consolidation and a resumption of the bigger uptrend. A similar 13% advance from the consolidation lows would extend to the 3150 area. 


The December breakout coincided with a golden cross in two long-term exponential moving averages. The indicator window shows the PPO(10,40,1), which measures the difference between the 10-week EMA and 40-week EMA. This PPO turns positive when the 10-week EMA crosses above the 40-week EMA and negative when the 10-week is below the 40-week. Notice that the PPO turned positive in early December and remains positive to affirm the current uptrend.  

****************************************
Thanks for tuning in and have a good weekend!
--Arthur Hill CMT

Plan your Trade and Trade your Plan
****************************************

Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
Subscribe to Don't Ignore This Chart! to be notified whenever a new post is added to this blog!
comments powered by Disqus