Charts Show Buying Opportunity for Euro Stocks

The rally that we've seen since July in the Eurostoxx 50 index is "still in full play," according to Julius De Kempenaer, technical analyst at Talergroup, Monday.

"From a longer-term perspective I still think that the European stock markets are well on their way to higher levels" he added.

His target for the Eurostoxx 50 is "at least 3,000" but he "wouldn't be surprised if we pushed through to 3,300."

For the short-term, De Kempenaer predicted a "setback" for the index, where he sees is falling toward 2,600, and suggested investors take the correction as "a good buying opportunity to profit from the further upward move that we see in the longer-term graphs."

When looking at the Eurostoxx 50 versus the Bund future, De Kempenaer told CNBC the charts suggests "you should be overweight stocks over bonds at the moment."

"The market is still very much in favor of this risk trade," he said.

  • Click here to watch the whole interview with Julius De Kempenaer