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(U4) Recovery Mode

EUROSTOXX50 TECHS
  • RES 4: 5151.00 High May 16 and the bull trigger
  • RES 3: 5132.00 High Jun 6
  • RES 2: 5092.00 High Jun 12
  • RES 1: 5017.00/39.84 High Jun 26 / 61.8% of May 16-Jun 14 sell-off
  • PRICE: 5008.00 @ 06:29 BST Jul 1
  • SUP 1: 4915.00/4860.00 Low Jun 28 / 14 and the bear trigger
  • SUP 2: 4846.00 Low Apr 19 and a key support
  • SUP 3: 4800.00 Round number support
  • SUP 4: 4785.40 2.236 proj of the May 16 - Jun 4 - 6 price swing

The trend condition in Eurostoxx 50 futures remains bullish and price is trading just below last week’s high. The recovery from the Jun 14 low appears to be an early reversal of the May 16 - Jun 14 correction. Attention is on 5039.84, a Fibonacci retracement. A break of this level would be a positive development. For bears, a reversal lower would signal a resumption of the bearish corrective cycle and open 4846.00, the Apr 19 low and a key support.

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