Euro Stoxx 50+

March 31 2006

S.FR.LY - SUEZ

Opinion: Bullish

The trend from October is still strongly bullish and as yet there are few signs to suggest any shift in this sentiment. Underpinned by the rising support trendline from October, the current setback to this dynamic offers scope for another leg higher to unfold, which would be capable of reaching the highest in a pair of 2001 resistance levels at 38.25.

What would indicate a different scenario ?

As mentioned above, there are few signs to suggest a fundamental shift from current bullish sentiment. However, we do note the gap down day of March-27, which broke a four week area of support and may yet pose as a significant barrier to a recovery.

Key bull triggers activated by closing break

LY relative to Eurostoxx 50

Resistances

Implications if overflowed

33.71/33.80

Closes minor gap resistance of March-27 and reclaims a four week support area. Hints that a leg higher of the October advance is unfolding.

36.05

Confirms another leg higher of the October advance is underway, which is likely to result in a rise to 38.25

.

Key bear triggers activated by closing break

Supports

Implications if broken

31.75/31.65

Fills the bullish gap of March-6 and also breaks the October rising trendline. SUEZ now under pressure and vulnerable to a drop to 28.22

Supports and Resistance table - Nearest Levels*

Supports

31.75/

30.7

28.22

31.65

Resistances

33.71/

36.05

38.25

3.8

* A close above any given resistance, or beneath support is needed to confirm a break.