Free Trial

Overbought Conditions Unwinds

EUROSTOXX50 TECHS
  • RES 4: 3630.53 0.618 proj of Mar 16 - Jul 21 rally from Oct 29 low
  • RES 3: 3586.44 High Dec 18 and bull trigger
  • RES 2: 3544.77 Low Dec 18 and gap high on the chart
  • RES 1: 3516.66 High Dec 21 and gap low on the chart
  • PRICE: 3448.68 @ Close Dec 21
  • SUP 1: 3401.14 Low Dec 21
  • SUP 2: 3396.02 High Sep 3 and a key support
  • SUP 3: 3332.19 38.2% retracement of the Oct 29 - Dec 18 rally
  • SUP 4: 3305.77 High Oct 12

EUROSTOXX 50 volatile price action dominated yesterday's session as a risk-off mood highlighted the start of this week's activity. The sharp pullback yesterday defines a clear resistance at 2586.44, Dec 18 high. The trend condition has been in overbought territory and the sell-off signals the start of a corrective phase that would open 3332.19 if further weakness follows. This is a Fibonacci retracement. Initial resistance is yesterday's high of 3516.66.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.