Euro Stoxx 50 has opened sharply above its 200-day average and a sustained close above here should confirm a bullish ‘triangle’ continuation pattern, with resistance above 3438/48 seen next at 3532, which economists at Credit Suisse would look to cap at first.
Key quotes
“Euro Stoxx has opened sharply above its 200-day average, currently at 3357, and a sustained close above here and then the 3395/3400 key price resistance should confirm the sideways range from early June has been resolved higher for the completion of a bullish “triangle” continuation pattern, with the market already challenging next resistance at the late February/early March price gap and price resistance at 3438/48.”
“A direct break above 3448 can see resistance next at 3532 – the 78.6% retracement of the entire Q1 collapse – which we would look to cap at first. Above in due course can see resistance then at 3595/96, the December 2019 low.”
“Support at 3404/3392 needs to hold on a closing basis to maintain the break higher. Back below would throw a question mark over the break higher (yet again), with support seen next at 3333/21. Suspect only back below here though curtails thoughts of a bull ‘triangle’.”
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