We look at the Euro Stoxx 50 in the monthly chart. To assess the technical chart situation, a trading approach consisting of the exponential 12-month average and the already old momentum with the setting 12 months is used.
A buy signal exists when the Euro Stoxx 50 is above the moving average and the momentum is above the zero line. Conversely, the technical traffic light turns red.
If the smoothing line falls below but the momentum is above the zero line, a long position remains. Conversely, there is no need for action, as was the case in October 2023, for example. The index closed below the average, but momentum was able to defend the zero line. The upward trend then continued.
At the moment, the rising 12-month average line is protecting the downside at 5,605 points. There is support from the previous high at 5,568 points. Although the momentum is falling, which indicates a weakening trend momentum, the oscillator is still above the zero line.
