Red lines - trading range
Blue lines- Fibonacci retracement levels
Eurostoxx60 is trading around 4,150. Two weeks ago the index broke out and below the trading range it was in for 5 months. Price broke below the key support at 4,200 and has provided us with a bearish signal. Price last week bounced towards $4,200 as a back test. What was once support, is now resistance. Eurostoxx50 is getting rejection signals from the 4,200 price level. Our next target remains at the 38% Fibonacci retracement level at 4,020. Price continues making lower lows and lower highs. Our view remains bearish for Eu50.
