Another day of volatile price action saw Stoxx50 fall sharply to fresh 2014 and 13 month lows before recovering most of the day’s losses. Initial resistance is now noted at 2947.5 with bulls needing a close above to ease bearish pressure whereas a close above 3034.9 is now needed to shift focus back to key DMAs in the 3123.6-3178.9 region. Key concerns for bears come from O/S studies and the Bollinger band bases limiting follow through.
RES 4: 3106.4 Previous daily support now resistance
RES 3: 3090.4 High Oct 9
RES 2: 3034.9 High Oct 10
RES 1: 2947.5 Low Oct 14 now resistance
LPREVIOUS CLOSE: 2874.4
SUP 1: 2789.6 2014 Low Oct 16
SUP 2: 2748.6 Low Sept 5 2013
SUP 3: 2720.6 Monthly Low Aug 28 2013
SUP 4: 2690.1 Low July 17 2013