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(U1) Monitoring The Bearish Engulfing Candle

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 @ 05:47 BST Jun 24
  • SUP 1: 4015.00 Low Jun 21
  • SUP 2: 4010.10 Channel base from the Feb 26 low (cont)
  • SUP 3: 4000.00 50-day EMA
  • SUP 4: 3871.00 Low May 13

EUROSTOXX 50 futures found support Monday at 4015.00. Attention remains on the Jun 18 sell-off 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 set-up to unwind. A resumption of weakness would expose the 50-day EMA at 4000.00. Key resistance and the bull trigger is 4153.00, Jun 17 high. A break resumes the uptrend.

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