European stocks extend gains thanks to oil collapseEU Stocks 50 CFDFOREXCOM:EU50FOREXcomFollowing the drop post FOMC, global equity markets have bounced back today, and European markets in particular looking strong. European equity markets remain at or close to record highs, supported by softer energy prices, not-so-bad economic data, and growing confidence that the European Central Bank may not have to hike rates any further - thanks to the collapse in oil prices. The Euro Stoxx 50 Index has staged a key breakout above 6,200 area of prior resistance this week, and it has held above that level since. Previously, the index was consolidating inside a flag-like pattern before staging a breakout. The index has already been making a series of higher highs and higher lows, holding for the most part above the 200-day moving average and the 21-day exponential moving average. The fact that the index is holding above both of those moving averages provides a clear indication that the trend is indeed strong, and we could potentially see further gains in the days and weeks ahead. The key question now is: where do we go from here? Given that the index is trading at all-time highs, we could use Fibonacci extensions as our guide. The 127.2% extension of the most recent significant downswing comes in at 6,424. So, that will be the next upside objective. The 161.8% extension comes I’m at 6,709. Keep support is at 6200, old resistance. Below that 6080/5 area is where we have the 21-day exponential moving average converging with last Wednesday’s high, which was engulfed by the big rally on Thursday of last week. That makes it the most important support to watch. By Fawad Razaqzada, market analyst with FOREX.com