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Corrective Bounce

EUROSTOXX50 TECHS
  • RES 4: 3217.96 High Oct 23 and the near term key resistance
  • RES 3: 3193.91 50-day EMA
  • RES 2: 3135.48 Low Oct 22
  • RES 1: 3058.86 High Oct 28
  • PRICE: 3091.54 @ Close Nov 2
  • SUP 1: 2920.87 Low Oct 29
  • SUP 2: 2912.96 Low May 25
  • SUP 3: 2877.00 50.0% retracement of the Mar - Jul uptrend
  • SUP 4: 2854.07 Low May 22

Despite yesterday's gains, the EUROSTOXX 50 outlook remains bearish following last week's sell-off. The index cleared a key support on Oct 28 at 3064.10, the base of a bear channel drawn off the Jul 21 low. This followed a breach on Oct 27 of key support at 3097.67, Sep 25 low. The focus is on 2877.00 next, 50% retracement of the Mar - Jul rally. Initial resistance is at 3058.86, Oct 28 high and just above the former channel base.

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