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(U3) Bullish Extension

EUROSTOXX50 TECHS
  • RES 4: 4515.00 High Nov / Dec 2007 (cont)
  • RES 3: 4513.00 High Jul 31 and the bull trigger
  • RES 2: 4420.00 High Aug 10
  • RES 1: 4388.50 61.8% of the Jul 31 - Aug 18 bear leg
  • PRICE: 4328.00 @ 06:29 BST Aug 31
  • SUP 1: 4308.6 20-day EMA
  • SUP 2: 4225.00/4187.00 Low Aug 24 / 18 and key support
  • SUP 3: 4177.40 61.8% retracement of the Mar 20 - Jul 31 bull leg
  • SUP 4: 4122.00 Low Mar 28

Eurostoxx 50 futures traded higher yesterday as the contract extends the corrective recovery from 4187.00, the Aug 18 low. The contract has breached resistance at the 50-day EMA at 4330.6. A continuation higher would signal scope for a climb towards resistance at 4420.00. On the downside, a breach of 4187.00 would be a bearish development and confirm a resumption of the downtrend.

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