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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: 4079.0 @ 05:45 BST Jun 29
  • SUP 1: 4026.70/15.00 Channel base from Feb 26 (cont) / Low Jun 21
  • SUP 2: 4011.00 50-day EMA
  • SUP 3: 3914.00 Low May 20
  • SUP 4: 3871.00 Low May 19

EUROSTOXX 50 futures dipped lower yesterday. The contract found support on Jun 21 at 4015.00. Attention is on the Jun 18 price action that in pattern terms is a bearish engulfing candle and signals a S/T top. Trend conditions are overbought and a pullback would allow this to unwind. A resumption of weakness would expose the 50-day EMA at 4008.30. Key resistance and the bull trigger is 4153.00, Jun 17 high. A break resumes the uptrend.

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