Technical Research – Euro Stoxx Index (3,302)
·Today's high was at the 50% Fibonacci retracement level of the wave iii sell off, this level stands at 3329 and while below this level a move lower is our preferred scenario.
·The 55dma is crossing the 200dma (death cross). This is a bearish signal which argues for a move lower as well.
·The suggested Elliot wave count on the chart favors one more leg lower before possibly moving higher again. The leg lower should test the 2,789-2,890 support zone.
·A move above 3,329 would be slightly bullish but given the structure on the chart and till we get other
signs of reversal any rally should be used as an opportunity to either take risk off the table or establish a short position.
Strategy: Sell 1 unit at mkt price, target 2,890 with a stop on a close above 3,370
Support: 3,159, 2,973 & 2,789-2,890
Resistance: 3,329, 3,350-70 & 3,460-70
|