EU Market Review 25th May 2021

EQT AB is in an uptrend since September 21st 2020.The price peaked at an all time high on April 14th 2021 at price 307.9 and has failed to penetrate that level since then. The price on May 14th 2021 validated the uptrend line by finding support on it and bouncing back in an upward trend. The price is currently at price 288.2 above the 0.50 Fibonacci retracement level of the last downward move. The MACD line is marginally below the zero level indicating a slightly bearish tendency, however the MACD signal line is crossed above the MACD line indicating a potential continuation of the upward run. If the price breaks and closes above the 0.618 Fibonacci retracement level at 289.6, this may result in a further rally. If the price breaks and closes below the 260 price of May 14th bottom, then a sell-off may be triggered.
For the bulls, resistance points at 289.6 Fibonacci 0.618 retracement level, at 307.8 all-time high price of April 14th and at 338.3 which is the 1.618 Fibonacci extension target price for a new high.
For the bears, support levels at 260 price of May 14th bottom, at 251.8 inside support from March 2nd top, and at 228.7 derived from the February 26th bottom.

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• News announcements expected on the EU area economic calendar. Most important news announcements coming up are the German ifo Business Climate, the UK CBI realized sales and the German Final GDP.

• European stocks held close to record highs on Monday with technology stocks leading the charge, as investors counted on strength in corporate earnings to keep the market momentum going.
The pan-European STOXX 600 index rose 0.1% to 445.07 points, just below its record high of 446.19 points. Italy's FTSE MIB lagged as several stocks traded ex-dividend.

• Asian Stocks struggled for momentum on Monday as investors awaited key U.S.
inflation readings for guidance on monetary policy, while bitcoin rebounded from its hammering on news of China's clampdown on mining and trading of cryptocurrencies.
MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.1% in slow trade. Japan's Nikkei added 0.2% and Chinese blue chips 0.4%.

• British employers called on Prime Minister Boris Johnson on Monday to overhaul regulation and tax rules to help them meet the challenges of Brexit, the post-pandemic recovery and preparing for a net-zero carbon economy.
The Confederation of British Industry (CBI) said 2021 should be a turning point for economic policy to break the pattern of weak productivity that has weighed on growth for more than a decade.

• At 06:00 (GMT) the German Final GDP q/q will be announced. This indicator measures the change in the inflation-adjusted value of all goods and services produced by the economy.

• At 08:00 (GMT) the German Information and Forschung (ifo) Business Climate result will come out. This survey is highly respected due to its large sample size and historic correlation with German and wider Eurozone economic conditions..

• At 10:00 (GMT) UK Confederation of British Industry (CBI) Realized Sales are due. This is a Survey of about 125 retail and wholesale companies which asks respondents to rate the relative level of current sales volume.

European indices Friday:

• DAX: +0.44%
• EURO: +0.65%
• MIB: -0.34%
• CAC: +0.35%

Sources: Investing.com, forexfactory.com