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Euro Stoxx 50 has cleared the 50% retracement of the Q1 collapse at 3085 to reinforce the tactically bullish view of analysts at Credit Suisse with resistance next at 3214/40.

Key quotes

“The 50% retracement of the Q1 collapse at 3085 has been broken and the rally gains further upside momentum, confirming our tactically bullish view. Next resistance is seen at the price gap from early March at 3214/40, where we would then expect the market to cap at first.”

“If the 3124/40 level is broken, then tactical strength could extend toward the 200-day average, currently at 3390, which would then also put our longer-term bearish view on the equity market into question.”

“Immediate support remains at 3050/49, then 3026/24, below which is needed to see the risk turn lower for a move back to the 13-day average at 3006, potentially the price gap at 2978/71 which we look to hold to maintain our bullish bias.”