Euro Stoxx 50 breaks above key long-term resistance at 3900/06, next stop at 4000 – Credit Suisse
|Euro Stoxx 50 is accelerating higher following its expected break above key long-term resistance from the point-of-breakdown from the GFC top at 3900/06 and analysts at Credit Suisse stay bullish for 3972 next and higher in due course.
Euro Stoxx strength is extending above the point-of-breakdown from the GFC top
“Euro Stoxx strength is starting to accelerate following the break above key long-term resistance at 3900/06 – the highs from February/May 2008 and point-of-breakdown to the GFC top – reinforcing our existing core bullish outlook.”
“We look for a move to 3972 first, the 78.6% retracement of the 2007/2009 bear market, before 3995/4000, where the next possibility of a short-term consolidation is arising. Although we think this latter resistance caps at first, above in due course can see resistance next at 4029 and eventually 4176, the November 2007 low.”
“Immediate support moves to 3922, with 3911/10 now ideally holding to keep the immediate risk higher. Below can see a deeper setback to price support and the 13-day exponential average at 3875/68, but with fresh buyers expected to show here. Indeed, we look to maintain a tactical bullish bias whilst above the 3784 late March low.”
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