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(U1) Bearish Engulfing Candle Still In Play

EUROSTOXX50 TECHS
  • RES 4: 4265.00 High Jan 15, 2008
  • RES 3: 4200.00 Round number resistance
  • RES 2: 4175.00 Nov 26, 2008 low (cont)
  • RES 1: 4153.00 High Jun 17 and bull trigger
  • PRICE: 4016.00 @ 05:43 BST Jun 25
  • SUP 1: 4015.60/00 Channel base from Feb 26 (cont) / Low Jun 21
  • SUP 2: 4004.20 50-day EMA
  • SUP 3: 3914.00 Low May 20
  • SUP 4: 3871.00 Low May 13

EUROSTOXX 50 futures found support Jun 21 at 4015.00. Attention remains on the Jun 18 sell-off however that in pattern terms is a bearish engulfing candle and signals a potential S/T top. Trend conditions are overbought and a corrective pullback would allow this to unwind. A resumption of weakness would expose the 50-day EMA at 4004.20. Key resistance and the bull trigger is 4153.00, Jun 17 high. A break resumes the uptrend.

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