EUROSTOXX (SX5E) perfect reaction higher from blue box area

In this technical blog, we will look at the past performance of the Elliott Wave Charts of the Eurostoxx (SX5E) index. We presented to members at the elliottwave-forecast. In which, the rally from the 23 October 2023 low ended as an impulse structure. But showed a higher high sequence with a bullish sequence stamp favored more upside extension to take place. Therefore, we advised members not to sell the index & buy the dips in 3, 7, or 11 swings at the blue box areas. We will explain the structure & forecast below:

EUROSTOXX(SX5E) daily chart from 8.04.2024 update

Here’s the Daily Elliott wave chart from the 8.04.2024 Weekend update. In which, the cycle from the 10/27/2023 low ended as an impulse structure at 5121.71 high. Down from there, the index made a pullback to correct that cycle. The internals of that pullback unfolded as Elliott wave double three structure where wave W ended at 4767.15 low. While wave X bounce ended at 4907.39 high. Then wave Y managed to reach the blue box area at 4550.88-4329.72 equal legs area. From there, buyers were expected to appear looking for the next leg higher or for a 3 wave bounce minimum.

EUROSTOXX(SX5E) daily chart from 9.08.2024 update

This is the latest Daily Elliott wave Chart from the 9.08.2024 Weekend update. In which the index shows a reaction higher taking place, right after ending the correction within the blue box area. Allowed members to create a risk-free position shortly after taking the long position at the blue box area. However, a break above the 5121.71 high is still needed to confirm the next extension higher & avoid a double correction lower.