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(U1) Bearish Engulfing Candle

EUROSTOXX50 TECHS
  • RES 4: 4265.00 High Jan 15, 2008
  • RES 3: 4175.00 Nov 26, 2008 low (cont)
  • RES 2: 4153.00 High Jun 17 and bull trigger
  • RES 1: 4052.50 Intraday high
  • PRICE: 4026.00 @ 05:57 BST Jun 21
  • SUP 1: 4015.00 Intraday low
  • SUP 2: 3988.50 50-day EMA
  • SUP 3: 3871.00 Low May 13
  • SUP 4: 3830.00 Channel base from the Feb 26 low

EUROSTOXX 50 futures have started the week on a softer note. This follows Friday's sharp sell-off that in patterns terms, is a bearish engulfing candle. Trend conditions are overbought and a corrective pullback would allow this condition to unwind. Attention is on the 50-day EMA that intersects at 3988.50. Note that the area around this EMA is a strong support zone. Key resistance and the bull trigger is at 4153.00, Jun 17 high.

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