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June 01, 2023- Price action backs away from resistance at 4,368.62 despite bullish mood
- Market bulls strengthened by lower Bollinger Band® currently at 4,244.59
After finishing yesterday at 4,218, the STOXX Europe 50 Index went up to 4,271.37 before paring its losses and closing at 4,257.61.
The index has been trending positively for about 2 months. Approximately a month ago, the STOXX Europe 50 Index reached a significant high of 4,408.59 but has struggled to hold onto its gains and declined 4.32% since then.
The STOXX Europe 50 Index chart analysis: although EuroSTOXX is appreciating today after rising as high as 4,271.37, price action is now slowing and consolidating around 111 points below the 4,368.62 resistance level. Trend-focused traders would be interested to note 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. According to asset volatility analysis, the STOXX Europe 50 Index's lower Bollinger Band® is at 4,244.59, indicating that the market is oversold and fertile for new buyers.
With market volatility ebbing, the current technical outlook indicates the STOXX Europe 50 Index will remain range-bound for the immediate future.
Fundamental indicators – highly important Unemployment Change data from Germany beat analyst expectations of 14,000 with a reading of 9,000.
The STOXX Europe 50 Index shows positive signs, other assets are also on par: DAX went up by 1.21% today, and closed at 15,854. S&P 500 went up by 0.99% today, and closed at 4,221. FTSE is trading around 7,490.27 after ending today's session at 7,446 (up 0.59% today).
Upcoming fundamentals: tomorrow at 07:00 UTC data for Spain Unemployment Change will be released, with an expected decline to -40,100 from the preceding figure of -73,900.
