Key support level at 4,036 looms for downtrending the STOXX Europe 50 Index; currently 29.08 points away

• Price action honing in on likely support at 4,036
• Price action breaks below known Fib level (4,062.78) with 4,028.31 the next target

The STOXX Europe 50 Index's bearish run has lasted 6 days so far (-196.8 points). Yesterday's session continued down the same path: down on the day: the STOXX Europe 50 Index closed at 4,065 after ranging between 4,042.75 and 4,174.67.

Having soared to a high of 4,313.78 approximately 12 days ago, the STOXX Europe 50 Index is now trading 4.56% lower.

The STOXX Europe 50 Index chart analysis: EuroSTOXX could begin to recover as it approaches significant support, now 29.08 points away from 4,036. Dipping below could be an indication that further losses are ahead. Trend analysis indicates that the Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored. After descending below strong Fibonacci support at 4,062.78, market bears have earmarked 4,028.31 as the next downside target. Analysis based on the asset volatility indicates that the STOXX Europe 50 Index's lower Bollinger Band® is at 4,118, indicating that the asset has overextended to the downside and could, therefore, bounce back as buyers look for bargains.

With market volatility ebbing, the current technical outlook indicates the STOXX Europe 50 Index will remain range-bound for the immediate future.

In the meantime, negative performances are also seen in other markets, CAC is down to 6,925.4, losing 100.32 points, after ending the previous session around 7,025.72. Dow Jones lost 1.19% yesterday and closed at 32,247. DAX lost 1.33% yesterday and closed at 14,967.