EUROSTOXX – losses from 200-day average keep signals bearish
JUN'16 CONTRACT - Against a background of bearish signals in Q2, but with futures virtually unchanged since April’s open, weekly sentiment has been mixed and volatile. Investors have been selling into strength from close to the 200-day average rate and towards this year’s highs, but they have also been buying dips and protecting a sequence of higher monthly lows. So despite last week’s 100 point selloff through the key 50-day and 100-day averages signals are not strong. However, there remains a bearish bias as signals point to a test of May and April's lows.
Management and risk description
Allow room to sell any rally and lower stop to entry if the first target is met
Entry: market and 2943, Friday's Marabuzo line
Stop: 3003, just above the window which has been left open since Thursday's close
Target: 2855, May's low and 2775, April's base