SUPPORT: 2566 2558 2543 2503 2481 2469 2451 2435 2412 2377
RESISTANCE: 2596 2602 2625 2643 2660/62 2684 2698/99* 2719 2732 2755/58
Yesterday Euro Stoxx gapped down on the open leaving a gap from 2662 to 2643 and continued the march lower making a low of 2566 and closing at 2572. Spread betting prices are indicating a higher opening at 2583 and the short term stochastics are diverging for a buy signal, the daily and weekly’s are neutral.
We have our first support level at 2566 this is yesterdays low, attempt longs here with a stop below the daily downward trend line at 2558. If we do manage to trade lower losses will be capped at 2543 the med term 61.8% fib as the golden fib usually holds.
We have resistance at 2596 a previous high we broke down from which concurs with the med term 50% fib at 2602. A break here will take us higher the short term 38.2% fib at 2625 and then on to the short term 50% fib at 2643 which is also the start of the gap so from here we should trade up to 2662, cover longs here.
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