Red lines- trading range
Blue lines- Fibonacci retracement levels
Eurostoxx50 index is trading around 4,129. Last week the index back tested the lower boundary of the trading range it was in. Previous support at 4,200 is now resistance. Price got rejected and the beginning of the week finds the index under pressure. As long as we trade below 4,200 our primary pull back target remains at 4,020 and the 38% Fibonacci retracement level. The recent high at 4,236 formed a higher high relative to the 4,216 high. If bulls manage to form a higher low and break above 4,236 then we will have a strong bullish signal. Until then price remains vulnerable to the downside.
