Source : Reuters lire le PDF
The STOXX Europe 600 index, the euro zone Euro STOXX 50 and Germany's Dax moved into "overbought" territory on their 20-day Relative Strength Index, a momentum indicator, meaning that some short-term sellers may start to take profit on the indexes in the coming days.
Charts on the STOXX 600 also showed the pan-European gauge closed at a resistance level, 285, that capped the index twice in May 2011.
"If you're long, you should stay long and set a stop loss, but if you're not long it's pretty dangerous to buy now," Valerie Gastaldy, the head of Paris-based technical analysis firm Day-By-Day, said.
"If we consolidate now it will not be a very steep fall, but if we get to (the 2011 peak at) 292, that will be really overstretched."
She recommended setting a stop loss at 281, the higher end of a gap between Wednesday's open and the previous session's high.