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(H3) Northbound Despite An Overbought Condition

EUROSTOXX50 TECHS
  • RES 4: 4303.20 2.382 proj of the Sep 29 - Oct 4 rise from Dec 20 low
  • RES 3: 4269.50 2.236 proj of the Sep 29 - Oct 4 rise from Dec 20 low
  • RES 2: 4230.50 High Feb 10, 2022 (cont)
  • RES 1: 4258.00 High Feb 2
  • PRICE: 4244.00 @ 05:48 GMT Feb 3
  • SUP 1: 4127.30/4097.00 20-day EMA / Low Jan 19 and a key support
  • SUP 2: 4006.30 50-day EMA
  • SUP 3: 3890.00 Low Jan 4
  • SUP 4: 3753.00 Low Dec 20 and the bear trigger

The EUROSTOXX 50 futures trend needle points north. The contract has breached resistance at 4206.00, the Jan 18 high. The clear break of this level confirms a resumption of the current uptrend and paves the way for gains towards 4269.50, a Fibonacci projection. Note that the trend remains overbought. A pullback, if seen, would represent a healthy correction. A break of 4097.00, the Jan 19 low, would signal the start of a short-term bear cycle.

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