Here's Why It's Time To Buy Europe
Gregory W. Harmon | Aug 12, 2014 08:16AM ET
From some perspectives Europe is on sale. When I look at the chart of the DJ Euro Stoxx 50, there is a potential double bottom at 2875. But that is not all. The Hammer candle (in the circle) is a reversal candle that was confirmed higher Monday. To round out the picture, the RSI is making a new higher high. All that is needed for a clean sweep higher is the MACD to cross up. And that has leveled and near a cross.
But it is not just the broad Euro STOXX index that is turning. The German DAX at the conservative end has also made a double bottom and is turning up. It has the same characteristics in the RSI and a bottoming candlestick pattern.
At the other end of the spectrum the Italian MIB looks similar. A bounce off of double bottom support and a RSI that is turning back higher.
Each and every one of these could fail but it is time to take notice because all markets and the Index are showing signs of a turn. Each offers a trading opportunity with a high reward to risk profile against the double bottom low. And each can be traded using ETFs.
Disclosure: The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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