Broke 3 year down-trend line✅. Now targets 12 year down-trend line, which dates back to Nov’09. Target level is pre-covid level, 102.5. Pullback support is at 80. I add US10Y (orange line) , why is US10Y and EuroBanks act corralated? Happy trades
Short chart idea about EU banks.
Expecting choppy times ahead. Currently, at the bottom of the downtrend.
I do not think that the worst case scenario is likely, although can never underestimate the strength of a potential domino effect to a solvency crisis. You can see the probable bottoms from the labelled array of trend lines.
Intuitively, you can observe,...
EUROSTOXXBANKS ut M idea
"Well someone told me yesterday
That when you throw your love away
You act as if you just don't care
You look as if you're going somewhere
But I just can't convince myself
I couldn't live with no one else
And I can only play that part
And sit and nurse my broken heart
So lonely
So lonely
So lonely
So lonely
…"
European bank index has broken a 7 year trendline that ECB has long defended. Result? Failure. Breaking 76.7 on the EuroStoxx will give full bears control.
Our trade idea from last year:
Euro interest rates are negative and the curve remains flat with no end in sight. This is destructive to net interest margin and the sustainability of European banks. Investors are stepping away from bank shares, having sold throughout 2018 and prices are back to 2009, 2012, and 2016 levels. European banks sector is now heading for a break to multi-year lows. ...
How does a bank make money when real interest rates are negative?
***This is not investment advice and is simply an educational analysis of the market and/or pair. By reading this post you acknowledge that you will use the information here at YOUR OWN RISK
