Austria's Stock Market (EWO) - Quick Note

The Austrian Stock Market (Austrian Traded Index “ATX”) is at an inflection point and may start a new bullish phase. We will be using the Austria ETF “EWO” as a proxy for the Austrian Traded Index.

On the weekly chart, you can see that EWO broke a long-term downtrend line that started in early 2022. This event tells us that EWO is ready to start moving higher. The Anchored Volume Weighted Average Price (AVWAP, orange line) set to the 2022 high hints that short sellers have been washed out of the market and that buyers are in control as long as the price can stay above $20. Price targets could be: 1) the 2022 high of $27, or 2) the Fibonacci Pivot Points at $24 or $26.

Looking at the daily chart you could see that EWO is in a “Rounding Bottom” pattern. This usually leads to either a cup & handle pattern, where where price dips and is bought up, or price simply continues higher. EWO follows a 74 trading day cycle bracket with 37 trading day half-cycles. A half-cycle trough may occur near 4/8, providing a decent entry opportunity. The Stochastics, RSI and Money Flow Index do seem short-term overbought, so buying on weakness would make sense.

For Paid Subscribers we’ll go over the Cycle Forecasts for EWO until the end of 2024.

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