Euro Stoxx 50: Double-top remains in place – Credit Suisse

Euro Stoxx 50 is well below key averages and a ‘double-top’ remains in place, as analysts at Credit Suisse note.

Key quotes

“Euro Stoxx 50 has dropped sharply through February/March and has triggered a major ‘double top’ pattern below the December 2018 low at 2909.” 

“Medium-term moving averages have completed a bearish ‘death-cross’, marking a further technical deterioration. 

“We expect further weakness during Q2, with the next supports seen at the 2303/00 YTD low, then the 78.6% retracement of the 2009/2020 bull market at 2215.”

“Above key resistances at 2900/09 would remove our downside bias for now, which is the 38.2% retracement of the 2020 fall and the December 2018 low.”