Amid sharp decline in the global stock indices since the beginning of the year European index EUROSTOXX50 has lost about 14%. During the final surge of decline from 3515.0 to 2840.0 last December, the price has managed to go above the level of 23.6% Fibonacci. Upward correction stopped at the level of 3050.0. Since the beginning of European session the price has broken down the level of 3000.0 (Fibonacci 23.6%) and is going down on the daily chart in the downward channel with the bottom limit below the level of 2840.0 (lows of the year). On the four-hour chart the price has pushed off from the level of 3015.0 (ЕМА50) and the upper limit of the downward channel, going through the level of 3000.0.
On the four-hour chart the indicators OsMA and Stochastic give sell signals. On the daily chart the indicators are turning in favour of the short positions.
Consolidation of the price below the level of 2950.0 will return the price in the downtrend. If the price goes above the level of 3180.0 (Fibonacci 50%), it will indicate the reverse of downtrend. Strong resistance levels 3100.0 (Fibonacci 38.2% and ЕМА144 on the four-hour chart) and 3150.0 (ЕМА200) will prevent further rise in the index EUROSTOXX50.
Support levels: 2950.0, 2920.0, 2900.0 and 2840.0.
Resistance levels: 3000.0, 3015.0, 3050.0, 3100.0, 3135.0, 3150.0 and 3180.0.
Sell Stop: 2940.0. Stop-Loss: 3020.0. Take-Profit: 2900.0, 2840.0 and 2800.0.
Buy Stop: 3070.0. Stop-Loss: 2990.0. Take-Profit: 3100.0, 3135.0, 3150.0, 3180.0 and 3200.0.