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February 28, 2023
- The STOXX Europe 50 Index is eyeing 4,204.29 as its nearest support level
- The STOXX Europe 50 Index explored above its 21 day Simple Moving Average around 4,231, a potential early indicator of a new bullish phase to come
The STOXX Europe 50 Index weakened earlier in the day, before moving away from its 4,222.23 low and recovering back to 4,238.38.
The index has been trending positively for about 2 months. The STOXX Europe 50 Index hit a significant low of 3,279 around 4 months ago, but has since recovered 29.55%.
Analysis of the STOXX Europe 50 Index's recent price action suggests EuroSTOXX could begin to recover as it approaches significant support, now 34.09 points away from 4,204.29. Dipping below could be an indication that further losses are ahead. Trend analysis indicates that despite being in the red so far in the current trading session, the STOXX Europe 50 Index peaked above its 21 day Simple Moving Average around 4,231 — typically an early indicator of a new bullish trend beginning to emerge. According to asset volatility analysis, the STOXX Europe 50 Index's upper Bollinger Band® is at 4,304 which indicates a further downward move may follow.
With market volatility ebbing, the current technical outlook indicates the STOXX Europe 50 Index will remain range-bound for the immediate future.
Fundamental indicators – Spain HICP (YoY) (Feb) released today at 08:00 UTC with a figure of 6.1, while the previous figure was 5.9.
In the meantime, negative performances are also seen in other markets, after ending yesterday's session at 7,935, FTSE lost 58.72 points and is trading around 7,876.28. Hang Seng goes down 0.79% to trade around 19,800.
Other assets are showing positive performances as ASX 200 is up 0.47%.
Upcoming fundamentals: Germany Unemployment Change projected to decline to 9,000 while previous data was -15,000; data will be released tomorrow at 08:55 UTC.
