STOXX50 oversold bounce back capped at 5056The STOXX50 Index remains in a bearish structure, with recent price action confirming a break below the prior consolidation zone, indicating potential for further downside.
Key Resistance: 5056 – former support turned resistance, aligning with the intraday consolidation area.
Support Levels:
4645 – near-term target if bearish momentum continues
4548 and 4480 – medium to long-term downside objectives
An oversold bounce may occur, but unless price breaks and closes above 5056 on the daily chart, the bearish outlook remains intact.
Conversely, a confirmed breakout above 5056 would invalidate the bearish bias and open the path to test 5154, with 5237 as a secondary resistance.
Conclusion
The STOXX50 bias is bearish below 5056. Watch for a rejection at that level to confirm downside continuation. A daily close above 5056 would shift the outlook to bullish.
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