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(U3) Watch Resistance At The 50-Day EMA

  • 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: 4330.50/4420.00 50-day EMA / High Aug 10
  • PRICE: 4314.00 @ 05:40 BST Aug 29
  • SUP 1: 4225.00/4187.00 Low Aug 24 / 18 and key support
  • 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 condition in Eurostoxx 50 futures remains intact despite this week’s gains. Last Thursday’s sharp sell-off reinforces a bearish theme. The move lower signals the end of the recent corrective bounce between Aug 18 - 24. Key support and the bear trigger lies at 4187.00, the Aug 8 low. A break of this level would confirm a resumption of the downtrend. Resistance to watch is 4330.50, the 50-day EMA. A clear break would signal a short-term reversal.

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