Euro Stoxx 50 is stabilizing after a strong V-shaped rebound from April lows, with technical signals hinting at renewed upside momentum. Key support at 5265 could pave the way for a climb toward 5435 and possibly retest the March peak, Société Générale's FX analysts note.
Support at 5265 key for further rally
"Euro Stoxx 50 staged a V-shaped recovery from its April trough at 4540 points. Recent price action has turned range-bound, with the index forming a small base. The daily MACD has crossed above its trigger line, indicating a recovery in upward momentum."
"The low reached earlier this week at 5265 points serves as a critical support level. Defense of this could lead to a rebound towards a multi-month descending trend line at 5400/5435 points, followed by the March high of 5568 points."
