Europe Market (Intraday Retracement) SXXP - 08/04/2025 Understanding todays Intraday trade in Europe market
On Aug 5th 2024, the Europe Index (SXXP) made a low of 480 and this low hasn't been broken until yesterday (April 7th)
On April 7th the index broke the low of April 4th 492.23 and closed at 474.02
The market has 2 options:
Option1: Break 474.02 and go down.
Option2: Retrace back upwards to test resistance
So how does retracement work?
Retracement is the resistance zone which hasn't been challenged recently. You can notice a strong 15mins red candle on April 7th which undercut 492.23. Hence 492.23 becomes the 1st retracement target/Resistance if the market moves upwards.
Conclusion: A bearish markets includes upwards moves called as retracement moves. One should not confuse a retracement move to a long term bullish move.
Its important for intraday traders to be openminded about moves on either side irrespective of the medium term or long term trend.
Regards,
Uday
