After probing graphical support at 4030, a bounce in Euro Stoxx 50 is underway. But if the index fails to surpass the 4240 mark, a deeper down move would be the most likely scenario, in the view of economists at Société Générale.
Break below the 4030 mark can extend the decline
“Failure to overcome 4240, the 76.4% retracement of recent pullback could mean risk of a deeper down move.”
“Break of 4030 can extend the decline towards 3910 and December low of 3800/3770.”
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