The Dow Jones EURO STOXX 50 could jump 25 percent over the next two months in a bear-market rally, Roelof van den Akker, chartist from ING Wholesale Banking, told CNBC Wednesday.
“It seems to be that we have a low within the EURO STOXX 50 and the equity markets in general,” Akker said “We should expect this around 25 percent bear-market rally in two months to around 2,600 with the EURO STOXX 50,” he said.
A break above 2,220 on the daily chart would confirm the rally, he added.
Stocks have been pushing progressively lower over recent months, raising fears of another sharp leg down.
But Akker points to a “solid, horizontal support area between 2,000 and 1,850 (on the EURO STOXX 50),” and the “oversold” condition of the Relative Strength Index.
“Back in September, after this oversold reading (in the RSI), prices rallied 25 percent in two months, before prices declined again,” said.
Akker is quick to point out that the rally he expects would only be a temporary rise ahead of further weakness.
- Watch the full Roelof van den Akker interview above.
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