European benchmark aims higher
· We stated in our last client report “for Friday, however, we see risk of a dip lower, but would look for 3255 support to try to hold” and the initial dip lower held here, with a bounce from 3261.
· However, a far more robust extension of our still bullish theme for June allowed for a push to another new cycle high and through a confluence of Fibo targets at 3296/ 3301.
· This leaves risk still higher early this week to target 3315 and 3337 Fibo levels next and maybe 3354 and 3378.
· Although the 8-day RSI is again OB, it has confirmed the new high, leaving scope to go still higher.
WHAT CHANGES THIS?
· Below 3255 eases bull risks; through 3216 signals a neutral tone, only shifting negative below 3199.
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Daily Euro STOXX 50 Future (Adjusted Continuation) Chart
2 Hour Euro STOXX 50 Future Chart