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(U3) Gains Considered Corrective

EUROSTOXX50 TECHS
  • RES 4: 4539.20 1.382 proj of the May 31 - Jul 3 - 7 price swing (cont)
  • RES 3: 4515.00 High Nov / Dec 2007 (cont)
  • RES 2: 4513.00 High Jul 31 and the bull trigger
  • RES 1: 4341.10/4420.00 50-day EMA / High Aug 10
  • PRICE: 4280.00 @ 05:56 BST Aug 23
  • SUP 1: 4187.00 Low Aug 18
  • SUP 2: 4177.40 61.8% retracement of the Mar 20 - Jul 31 bull leg
  • SUP 3: 4122.00 Low Mar 28
  • SUP 4: 4098.10 76.4% retracement of the Mar 20 - Jul 31 bull leg

A bearish theme in Eurostoxx 50 futures remains present and the latest recovery appears to be a correction. The contract has recently breached support at 4276.00, the Aug 8 and 15 low and cleared 4220.00, the Jul 7 low. This opens 4177.40, a Fibonacci retracement. Key short-term resistance is unchanged at 4420.00, the Aug 10 high. Initial firm resistance is 4341.10, the 50-day EMA.

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