EURO STOXX 50: European benchmark aims for 3126 retrace, potentially 3090/85 and 3073 targets
A low level consolidation Friday as expected, having stated in our last report that “we see a digestion bias, likely capped below 3185, but holding the 3131 low”.
This activity reinforces bearish pressures from the prior push below the 3207 late June low, the retrace at 3200 and the bull gap at 3196-92, to also take out a further retrace at 3163
The plunge through these supports leaves the threat to the 61.8% retrace at 3126 early this week.
The bearish bias is now below 3126 to the 3090/85 area and maybe 3073.
WHAT CHANGES THIS?
Above 3185 eases bear risks; through 3239 signals a neutral tone, only shifting positive above 3291.
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