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May 14, 2023
- Upward momentum including 0.19% gain insufficient to breach pivotal resistance level at 4,338
- Market bulls strengthened by lower Bollinger Band® currently at 4,273
Recent gains came after 14 days of trading sideways, Friday's session shows improvement: after closing at 4,309.75 Thursday, the STOXX Europe 50 Index maintained a strong bullish bias that helped the index close higher at 4,318 Friday. However, market bears ensured the the STOXX Europe 50 Index topped out at 4,344.32 and that by the end of the session, the market had marked out a distinct 4,304 to 4,344.32 range.
The index has been trending positively for about 2 months. The STOXX Europe 50 Index hit a significant low of 3,279 around 7 months ago, but has since recovered 31.43%.
Technical analysis trend indicators suggest that despite posting gains on Friday, EuroSTOXX slid below its 10 day Simple Moving Average at 4,322.36 during the last session — an early indicator that a negative trend could be emerging. Asset volatility analysis shows that the STOXX Europe 50 Index's lower Bollinger Band® is at 4,273, indicating that the market is oversold and fertile for new buyers. Technical analysis shows that after reaching the known resistance zone beginning at 4,338, the STOXX Europe 50 Index price action retreated approximately 20.24 points.
With market volatility ebbing, the current technical outlook indicates the STOXX Europe 50 Index will remain range-bound for the immediate future.
The STOXX Europe 50 Index shows positive signs, other assets are also on par: Nikkei is trading around 29,400 after ending Friday's session at 29,127 (up 0.9% today). FTSE went up by 0.31% Friday, and closed at 7,754.62.
Meanwhile, KOSPI Composite Index is down to 2,475.42, losing 15.58 points, after ending the previous session around 2,491.
Upcoming fundamentals: Euro Zone Industrial Production projected to come out at -2.5% — worse than previous data of 1.5%; data will be released tomorrow at 09:00 UTC.
