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June 21, 2023- The STOXX Europe 50 Index is eyeing 4,332.58 as its nearest support level
- The STOXX Europe 50 Index looks below 4,338.57 (10 day Simple Moving Average) as signpost for new negative trend
The STOXX Europe 50 Index has been losing ground for 3 days, shedding a total of 1.64% of its value. More of the same today: the STOXX Europe 50 Index is sliding down from 4,343 to 4,322.75, taking a 20.25 points loss (0.47%) as the end of the trading session approaches.
The index has been trending positively for about 3 months. The STOXX Europe 50 Index is up 32.45% from the significant low of 3,279 it hit 8 months ago.
EuroSTOXX made an initial break below its 10 day Simple Moving Average at 4,338.57, a possible indication of a forthcoming negative trend. The STOXX Europe 50 Index's upper Bollinger Band® is at 4,406.22 which indicates a further downward move may follow. On the other hand, note that the STOXX Europe 50 Index could begin to recover as it approaches significant support, now 9.83 points away from 4,332.58. Dipping below could be an indication that further losses are ahead.
In the short term, the STOXX Europe 50 Index is expected to maintain its recent downtrend and continue spiralling lower.
Fundamental indicators – Germany Producer Price Index published yesterday at 06:00 UTC came out at -1.4%, falling short of the -0.7% projections and continuing its decline from the previous 0.3% figure.
In the meantime, negative performances are also seen in other markets, Hang Seng drops 1.98% to trade around 19,218. KOSPI Composite Index is down 22.37 points from the beginning of the session and now trades around 2,582.63. ASX 200 withdraws 0.58% to trade around 7,315.
Upcoming fundamentals: Germany Buba President Nagel speech set for tomorrow at 12:05 UTC.
