European equity indices started today's trading on a weaker footing with the majority of blue chips benchmark from the Old Continent starting today's session lower. Renewed concerns over EU energy security are putting pressure on regional indices, including blue-chips Euro Stoxx 50 index (EU50). However, bulls managed to regain control following a weaker opening and now most of the indices from the region trade above yesterday's closing prices. Beats in German and French flash manufacturing PMIs for August help boost sentiment.
Taking a look at EU50 index at D1 interval, we can see that the most recent upward impulse was halted in mid-August and EU50 has been pulling back since. It looks like sell-off may have been halted on the 3,650 pts support zone marked with 50% retracement of the upward move started in November 2020 and previous price reactions. Should buyers remain in control, market's attention will shift to the resistance zone marked with 38.2% retracement that has halted upward move in mid-August (3,825 pts).
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Source: xStation5
