Euro Stoxx 50 to extend its downtrend on a move below 3250 – SocGen

Euro Stoxx 50 recently formed a double bottom near 3250 resulting in a short-term bounce. Failure to hold 3250 would reinforce the downtrend, economists at Société Générale report.

Euro Stoxx 50 to see an extended bounce on a break past 3530

“If the index overcomes 3530, an extended bounce could materialize towards the target of the formation at 3700/3720 which is also the 200-Day Moving Average (DMA). This is an important resistance.” 

“Failure to hold 3250 would mean persistence in the downtrend that started last year.”