The EU50 index (Eurostoxx) has been falling in a descending channel since December 2015 from a high of 3522 points to a low of 2832 in January 2016.
In mid-January 2016, the market fell to a key level at 2969 (which is the September 2015 low). After testing and pivoting at this level, there was a failed attempt to rise higher when meeting strong resistance at the 21-day moving average and the top of the channel line around the key 3050 level.
RSI is in bearish territory, which adds to the bearish case. A break below 2832 would see more losses towards the 2777 area which was the 2014 low.
The overall outlook is bearish as long as the market remains below the 200-day moving average.
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