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(Z3) Trend Needle Continues To Point South

EUROSTOXX50 TECHS
  • RES 4: 4388.00 High Aug 30 and reversal trigger
  • RES 3: 4359.00 High Sep 15 and key resistance
  • RES 2: 4270.80 50-day EMA
  • RES 1: 4232.00 High Oct 11
  • PRICE: 4205.0 @ 08:26 BST Oct 11
  • SUP 1: 4082.00 Low Oct 4
  • SUP 2: 4055.40 76.4% retracement of the Mar 20 - Jul 31 bull cycle
  • SUP 3: 4034.00 Low Mar 24 (cont)
  • SUP 4: 4000.00 Psychological round number

Eurostoxx 50 futures trend conditions remain bearish, with Friday’s rally and the follow through early this week deemed corrective in nature. The contract has traded below 4128.00, the Sep 27 low. This confirms a resumption of the downtrend that started late July and signals scope for a move towards 4055.40, a Fibonacci retracement point. Initial firm resistance is at 4270.80, the 50-day EMA. A break of this average would signal a possible short-term base.

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