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(U3) Outlook Remains Bearish

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: 4424.00/4513.00 High Aug 2 / High Jul 31 and the bull trigger
  • RES 1: 4374.50 20-day EMA
  • PRICE: 4358.00 @ 05:56 BST Aug 10
  • SUP 1: 4276.00 Low Aug 8
  • SUP 2: 4220.00 Low Jul 7 and a reversal trigger
  • SUP 3: 4177.40 61.8% retracement of the Mar 20 - Jul 31 bull leg
  • SUP 4: 4122.00 Low Mar 28

A bearish threat in Eurostoxx 50 futures remains present following the reversal from 4513.00, the Jul 31 high. Tuesday’s move lower reinforces the current condition and price remains below both the 20- and 50-day EMAs. Furthermore, key support at 4331.00, the Jul 26 low, has been cleared. This further strengthens current conditions and opens 4220.00, the Jul 7 low and a reversal trigger. Initial firm resistance is 4424.00, Aug 2 high.

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