The industrial crisis in the Eurozone is gaining momentum. If this goes on, many companies will go bankrupt. But this situation can also be used as an opportunity to short European indices, provided that it is trading near yearly lows.
So far, the STOXX50 has tested the yearly low three times.
And given that there is a three-wave pattern (ABC), where wave A represents the selling pressure this month, investors can sell from current prices up to the 61.8% and 50% retracement levels. Set stop loss at 3800 and take profit on the breakdown of 3370.
This strategy is based on the Price Action and Stop Hunting methods.
Good luck and have a nice day!
