Blue lines- Fibonacci retracement
Red lines- trading range
For the last 5 months Eurostoxx50 index has made no real progress. Price has been moving mostly sideways inside a trading range. The upper boundary of the trading range at 4,420 was briefly broken upwards but bulls were unable to support prices. On the contrary after the break out prices returned very fast towards the lower range boundary at 4,200. Price bounced off the support at 4,200 and formed a lower high at 4,342. Price is now challenging the 4,200 level once again. At this price level we find the 23.6% Fibonacci retracement of the entire rise from September 2022 lows and the lower trading range boundary. We are now at very important support levels. A break below this level will open the way for a decline at least towards the 38% Fibonacci retracement around 4,020.