Yellow rectangle- major resistance area
Blue lines - Fibonacci retracements
Eurostoxx50 managed to reach once again at the yellow rectangle resistance area around 4,400 only to get rejected once again. Price made a two day pull back towards 4,343 opening the way for a deeper pull back towards the 38% Fibonacci retracement which was our target. Yesterday was a strong bullish day with price closing around 4,384. Today early optimism when price was trading around 4,408 was followed by selling pressures and price now on negative territory at 4,373. Failure to hold price above yesterday's low at 4,347, will open the way for a move towards 4,330 at least. Recent price action continues to confirm the importance of the resistance area around 4,400, thus making a possible break out above, an equally important bullish signal.
