Following Friday’s sharp fall Stoxx50 made minor fresh 5 month lows Monday as it continued to oscillate around the Bollinger band base. Two consecutive closes below increase the likelihood of consolidation or a minor correction while the Bollinger band base catches up. In saying that, bulls need a close above the 200-DMA to confirm an easing of bearish pressure and above the 55-DMA to target 2014 highs.
RES 4: 3194.4 100-DMA
RES 3: 3163.7 Previous daily low now resistance
RES 2: 3129.4 200-DMA
RES 1: 3105.4 Hourly resistance Aug 1
PREVIOUS CLOSE: 3070.3
SUP 1: 3061.9 Low Aug 4
SUP 2: 3036.1 Rising daily trend line Sept 13/Dec 13/Feb14
SUP 3: 3001.7 Low Mar 17
SUP 4: 2971.5 Monthly Low Mar 14