Euro Stoxx 50: Close below 3200/319 to turn the spotlight on the 3054/49 crucial support zone – Credit Suisse

Euro Stoxx 50 has dropped significantly and a close below key gap support at 3200/3191 would negate the base, with the spotlight then turning on the 3054/49 crucial support zone, the Credit Suisse analyst team reports.

Key quotes

“Euro Stoxx 50 is breaking sharply lower after rejecting its downtrend from the February high, today seen at 3301, melting below both its 63-day and 200-day averages. A sustained move below 3200/3191 though is needed to confirm the base has been negated and a more important turn lower is underway, with next support seen at 3147/37, then more importantly at the late September low at 3098.” 

“Resistance is seen at 3227 initially, then 3265, with the immediate risk now seen lower whilst below 3301/06.”