Euro Stoxx 50 to extend its climb above new year highs – Credit Suisse

Euro Stoxx 50 maintains its break to new highs for the year with next resistance seen at 4257, then 4300. Economists at Credit Suisse maintain a bullish outlook for European equities.

Support at 4171/66 to hold on a closing basis

“Euro Stoxx 50 maintains its break to new highs for the year, and with the Stoxx 600 already at new record highs, we maintain our core bullish outlook for the broader European equity space.”

“We see resistance next at 4257 ahead of the psychological 4300 level and then trend resistance from June last year, today seen at 4317. Whilst we look for this latter level/resistance to cap at first, a break in due course is expected to lead to an eventual challenge on the 4503/4573 key highs of 2007.”

“Near-term support moves to 4204/02, below which can see a setback to the 13-day exponential average at 4171/66, but with this ideally now holding on a closing basis. Only below the 63-day average at 4090 would warn of a more protracted setback though, which is certainly not our base case.”