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(Z3) Bears Remain In The Driver’s Seat

EUROSTOXX50 TECHS
  • RES 4: 4388.00 High Aug 30 and reversal trigger
  • RES 3: 4359.00 High Sep 15 and key resistance
  • RES 2: 4289.80 50-day EMA
  • RES 1: 4237.60 20-day EMA
  • PRICE: 4133.00 @ 06:38 BST Oct 3
  • SUP 1: 4125.00 Intraday low
  • SUP 2: 4109.90 1.236 proj of the Aug 10 - 18 - 30 price swing
  • SUP 3: 4095.00 Low Mar 28 (cont)
  • SUP 4: 4055.40 76.4% retracement of the Mar 20 - Jul 31 bull cycle

Eurostoxx 50 futures trend conditions remain bearish and the latest bounce has been corrective. The contract has traded below 4128.00, the Sep 27 low. A continuation lower would confirm a resumption of the downtrend that started late July and signal scope for a move towards 4109.90, a Fibonacci projection. Initial firm resistance is at 4237.60, the 20-day EMA. A break of this average would signal a possible short-term base.

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