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(M4) Bear Cycle Remains In Play Despite The Latest Bounce

EUROSTOXX50 TECHS
  • RES 4: 5127.70 1.382 proj of the Jan 17 - Feb 12 - 13 price swing
  • RES 3: 5079.00 High Apr 2 and the bull trigger
  • RES 2: 4990.00 High Apr 15
  • RES 1: 4923.80 20-day EMA
  • PRICE: 4917.00 @ 06:05 BST Apr 23
  • SUP 1: 4762.00 Low Apr 19
  • SUP 2: 4711.00 Low Feb 19
  • SUP 3: 4700.00 Round number support
  • SUP 4: 4626.00 Low Feb 13

Eurostoxx 50 futures traded to a fresh cycle low Friday, before recovering. Despite the bounce, a bearish corrective cycle remains in play and the move down this month has allowed an overbought trend condition to unwind. The contract has traded through 4860.60, the 50-day EMA. A clear break of this average would signal scope for a deeper retracement and opens 4711.00, Feb 19 low. Initial firm resistance is 4923.80, the 20-day EMA.

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