European stock markets opened lower on Tuesday as energy shares led benchmarks down following yesterday’s historic rout on oil. Analysts and traders clearly didn’t expect black gold to go below zero and this has unsurprisingly had a negative impact on European oil majors like Total and Eni, which are currently trading 5% lower and in such a bearish environment their bottom may still be considerably lower still.
Elsewhere traders welcomed lower trends of coronavirus cases from many of the worst-affected areas, which helped sustain positive market sentiment for non-energy sectors. However, all eyes will be on today’s earning reports with many large caps such as Procter and Gamble, Texas Instrument, Netflix and Lockheed Martin publishing their Q1 results and this could significantly increase market volatility in the afternoon.
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The Stoxx-50 Index is trading lower, just above the lower band of its bullish wedge pattern and this usually indicates a continuation of the underlying trend, which is currently bearish. Even if the price remains inside its current chart pattern, the RSI indicator showed a break-out of its bullish trendline and currently challenges its 50% neutral line and a break-out of the market below 2,800pts could quickly lead the market much lower towards 2,300pts.
While a student, Pierre Veyret had a passion for the financial markets. At the time, he studied International Trade through the setting up of import / export operations and it was the techniques of hedging against exchange rate risks that helped him to make the link with the financial markets, and all especially that of Forex. It is therefore with the aim of anticipating the price of currencies several months in advance that Pierre quickly turned to different methods of analysis by drawing inspiration and surrounding himself with experts in the field. Shortly after, Pierre decided to specialize in Technical Analysis, a discipline he had the opportunity to practice with real market professionals, thanks to AFATE / IFTA, an association of which he has been an active member for several years. Pierre Veyret is passionate about the field of the financial industry with a particular interest in the various techniques of stock market forecasting. Currently, Pierre is based in the City of London where he works as Chief Analyst. He performs regular interventions on a multitude of asset classes through various media (television, internet and print media).
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© 2019 High Leverage FX - All Rights Reserved.