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Pan-European Stoxx Index At The Mercy Of Banking Stocks

Published 04/08/2016, 05:30

“Times are changing in the European banking industry,” says Geoff Wilkinson, Associate, Linear Investments, as he joins the Tip TV Finance Show to offer the technical outlook on European indices. He is also joined by Mike Ingram, Strategist at BGC Partners, and Zak Mir, Technical Analyst at Zak’s Traders Cafe.

Highlights:

Euro Stoxx 50: Primarily driven by the banks. Yesterday saw a close below 2930. Key to recovery is regaining those levels. Key support at 2870. Clearly broken down through a well defined rising channel.”

Euroland bank index: Was very important to get back above 90.00 levels. Important that we hold 83.50 or we might go lower to 80.00. Resistance at 86.70. Below 83.50 capitulation of positional longs likely.

Euro Stoxx 600 – very slow grind higher over the last few weeks. Major down channel resistance at 346.50. We are below key support at 335.80 and a daily close below the same would expose 330.00. Current range is 310-350. Liquidity is getting to be extremely problematic.”

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