The Dow Jones Euro Stoxx 50 is set for a year-end rally of up to 15 percent and investors can take advantage by picking up stocks like Aegon, Siemens and Heineken, technical analysts told CNBC.
"I think we're in for a rally until year-end and the first quarter of 2009," Edward Loef, technical analyst at Theodoor Gilissen Bankiers, said Thursday.
"We have an upward potential of 12 to 15 percent, so I'm looking now for stocks to play this rally to the upside," he added.
Video: watch Edward Loef's interview above.
Loef recommends Dutch-listed insurer Aegon because the stock has completed a bottom formation and is now in an uptrend.
Loef says Aegon has 20 to 24 percent upward potential, which is more than the Eurostoxx 50 index.
Telecoms firm Siemens is another stock on Loef's 'buy' list as it's just a matter of time until it breaks to the upside, he said. Loef is targeting 18 percent higher than current levels.
Beer-maker Heineken is a 'buy', according to Geert-Jan Nikken, technical analyst from Rabobank. But supermarket chain Ahold and telecoms company KPN are still in a downtrend and investors should keep clear, Nikken said.
(Watch the full Geert-Jan Nikken interview here >>>).