European stocks should power higher over the long term, but the next month could take a chunk out of the market, Julius De Kempenaer, manager at Taler Trend Fund, told CNBC Thursday.
"I'm a long-term equity bull, however the long-term doesn't include the next six-to-eight weeks," Kempenaer said. "For the next couple of weeks I'd expect a slightly lower Euro Stoxx 50 Index and stocks in general in Europe."
"We have clearly broken the uptrend that emerged out of the March low of last year," he added.
The start of the year was pretty weak for European stocks, but they then bounced higher over the last four to five weeks, De Kempenaer pointed out. The bounce is now stalling around the 2,950-point level in the Euro Stoxx 50, he said.
"It looks like we're putting in the first lower high at that level and if that's going to happen then I think there's a bit of downside to come," De Kempenaer said.
"The first level I'm looking at is around 2,600 (points). If we break below that we could even have a bit of more downside, but that's still too early to call," he said.
- Watch the video above to see Julius De Kempenaer's predictions for the European banking and health care sectors.
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