The euro zone Euro STOXX 50 index will be poised for a nearly 3 percent upside in the very short term if it manages to close above a key technical level, triggering a surge that could pave the way for a major rally, according to ING.
The gauge of 50 euro zone blue chips, up 0.5 percent at 2,468.30, could easily rise to last Friday's high of 2,534 in the next few days if it manages to close above its 50-day moving average at 2,484 on Thursday, ING's senior technical analyst Roelof-Jan Van den Akker says.
He adds a further push above 2,610, a strong resistance corresponding to highs tested in March and September, would mark the start of a major rally.
"A break above 2,610 would be very bullish in confirming that we are seeing higher bottom again and then (we would be) rallying towards 3,000," Van Den Akker says.
Reuters messaging rm://francesco.canepa.thomsonreuters.com@reuters.net
Keywords: MARKETS EUROPE STOCKSNEWS