2016-08-03 15:30:39

Review and dynamics
On the daily chart the index EuroStoxx50 is traded in a descending channel with the upper limit moving between the resistance levels 3040.0 (ЕМА200) and 3010.0 (ЕМА144 and Fibonacci 38.2% to the decrease since December 2015).
Yesterday, the price has broken down support level of 2930.0 (ЕМА50 on the daily chart, ЕМА200, ЕМА144 on 4-hour chart) and consolidated at support level of 2890.0 (Fibonacci 23.6%).

Our opinion
On the 4 hour, daily and monthly charts the indicators OsMA and Stochastic show that the decline will continue. Breakdown of the level of 2890.0 may trigger further decline with the long-term target of 2700.0 (the lows of February 2016).
As an alternative scenario, the price can consolidate above the level 3040.0 and In this case, long positions will be advisable.
Meanwhile, short positions seem more preferable.

Support levels: 2890.0, 2845.0 and 2770.0.
Resistance levels: 2930.0, 3010.0, 3040.0, 3110.0 and 3150.0.

Trading tips
Sell Stop: 2880.0. Stop-Loss: 2940.0. Take-Profit: 2845.0, 2770.0 and 2700.0.
Buy Stop: 2940.0. Stop-Loss: 2880.0. Take-Profit: 3010.0, 3040.0, 3110.0, 3150.0 and 3200.0.

At support level of 2890.0
At support level of 2890.0

In the descending channel
In the descending channel