Technical Review | Tech analysis points to new bearish phase for the STOXX Europe 50 Index as it runs out of steam around 4,380.5

• Upper Bollinger Band® currently at 4,417

While the STOXX Europe 50 Index is on a 16 day stint of flat trade, Todays session shows some improvement: the STOXX Europe 50 Index is off to a good start after gaining 0.18% – now trading at 4,323.23.

The index has been trending positively for about 2 months. The STOXX Europe 50 Index has recovered 31.61% since descending to a significant low of 3,279 around 7 months ago.

Bollinger Band® analysis indicates that current price action is approaching the upper band at 4,417, thereby suggesting that EuroSTOXX is becoming overvalued.

Examining the technical analysis landscape, the STOXX Europe 50 Index is likely to reverse course and start pointing downward in the short term.

Fundamental indicators – Euro Zone Consumer Price Index released yesterday at 09:00 UTC with a figure of 7%, while the previous figure was 6.9%.

Other markets are also showing gains as Nikkei ascends 1.6% to trade around 30,574. DAX improves 1.05% to trade around 16,119. KOSPI Composite Index added 0.83% to its value, now trading at 2,515.4.

Upcoming fundamentals: Euro Zone ECB President Lagarde speech is scheduled tomorrow at 19:00 UTC.