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June 07, 2023- Price action breaks below important support level at 4,280.77
- Bollinger analysis indicates upper Band® is at 4,375.23
While the STOXX Europe 50 Index is on a 4 day bullish trend, Today's session might suggest a slow down — the STOXX Europe 50 Index closed yesterday's trading session sideways – today as trading session starts it is hovering around 4,297.
The index has been trending positively for about 2 months. The STOXX Europe 50 Index hit a significant low of 3,279 around 8 months ago, but has since recovered 31%.
EuroSTOXX's upper Bollinger Band® is at 4,375.23, suggesting that a downward move may follow. The STOXX Europe 50 Index fell below the 4,280.77 support zone and moved 16.26 points beyond it; the next level of support with significant buyer interest is estimated at 4,266.33.
Despite the market lacking direction, technical chart analysis strongly suggests the STOXX Europe 50 Index is positioned for a downward move in the near term.
Fundamental indicators – Germany Industrial Production released earlier showed a marked improvement to 0.3% from the preceding data of -2.1%, but fell short of the 0.6% figure forecast by a consensus of market analysts.
At the same time, mixed performances are seen elsewhere as Nikkei closed at 31,900 (down 1.82%). Hang Seng rises 0.8% to trade around 19,252. Having closed the previous session at 13,276, Nasdaq is up 0.57% today to currently trade at around 13,352.
Upcoming fundamentals: as things stand, upcoming Euro Zone GDP data is projected to fall short of market expectations with newly published data of zero, following on from the preceding figure of 0.1. New data is set to be published tomorrow at 09:00 UTC.
