Euro Stoxx 50+

March 31 2006

DE;EOGN - E.ON

Opinion: Negative - Topping out action

A lower peak is beginning to unfold below a recent intraday spike to Fibonacci extension resistance at 98.6,  which has already caused weakness to 89.4. Any subsequent failure to fully recover from this event begins to hint at medium term topping out action, which threatens a retest of support at 89.4, potentially, losses to stronger support at 85.6 over the near / medium term.

What would indicate a different scenario ?

A close above 95.03 will surmount the peak that is currently tracing out and is the minimum action required to negative the threat of topping out action.

Key bull triggers activated by closing break

EOGN relative to Eurostoxx 50

Resistances

Implications if overflowed

95.03

Overcomes a developing secondary peak and restores a bullish tone to the chart. Positions the stock for a return to 98.6 at the very least.

Key bear triggers activated by closing break

Supports

Implications if broken

89.4

Confirms a pattern of lower highs and lows as a correction of strong gains from October. Initially threatens a retreat to stronger support at 85.6.

Supports and Resistance table - Nearest Levels*

Supports

89.4

85.6

Resistances

95.03

98.6

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