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May 31, 2023- Price action honing in on likely support at 4,283.6
- Lower Bollinger Band® at around 4,246.51
After ending Friday at 4,291.58, the STOXX Europe 50 Index went up to 4,289 only to drop back to its starting point and close at 4,267.
The index has been trending positively for about 2 months. The STOXX Europe 50 Index is now trading 30.88% above the significant low (3,279) it slumped to 8 months ago.
EuroSTOXX made an initial break below its 50 day Simple Moving Average at 4,304.72, a possible indication of a forthcoming negative trend. Despite this, Bollinger Bands® shows an indication of recovery: the lower band is at 4,246.51, a low enough level to, generally, suggest that the STOXX Europe 50 Index is trading below its fair value. The STOXX Europe 50 Index could begin to recover as it approaches significant support, now 16.75 points away from 4,283.6. Dipping below could be an indication that further losses are ahead.
Overall, looking at the technical analysis landscape, it seems that although indicators are mixed and some are pointing in different directions further drawbacks may be next for the STOXX Europe 50 Index.
Fundamental indicators – data for Germany Unemployment Change published today at 07:55 UTC came out at 9,000, beating projections of 14,000 and showing improvement over the preceding figure of 23,000.
In the meantime, negative performances are also seen in other markets, ASX 200 is down to 7,091.3, losing 118 points, after ending the previous session around 7,209.3. After ending yesterday's session at 18,600, Hang Seng lost 365.73 points and is trading around 18,234. After ending yesterday's session at 31,328, Nikkei lost 428.16 points and is trading around 30,900.
Upcoming fundamentals: Germany Consumer Price Index figure is projected at 0.6%. It previously stood at 0.4%; data will be released today at 12:00 UTC.
