Sky is the limit for the European markets

Last week, the main negative factors weighing on European stocks - Trader War and Brexit subsided. This also helps European markets to revive and not only stabilize, but also to start rallies. Recent European stock ceilings are back with drilling prospects. In addition, good data on the Chinese economy fuels market optimism. European markets also seem to have more room to fill - up.

The Stoxx 600 tests ATH and continues to flirt with the tops. Euro Stoxx 50 and Stoxx 600 are about to make a new historic peak, which could happen today, analysts say.

Most of the indices are above their November peaks, which so far have been strong resistance.

The following levels are currently being monitored for historical peaks. There will be a huge opportunity if the Stoxx 600 manages to pass well above them. DAX and CAC still have a long way to go while setting new records.

Although momentum indicators such as the RSI are not yet in the overbought zone, a technical opening with a gap on Friday could entice bears to start filling it if the bulls fail to push the price up high enough.

The initial market reaction after the UK elections was positive, but it is still important to resolve the EU-Island trade dispute as well.

We saw today that the manufacturing sector in the Eurozone for the UK, Germany continues to lag below 50.

Source: Bloomberg Finance L.P.

Graphs: Used with permission of Bloomberg Finance L.P.

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