The STOXX Europe 50 Index eyeing key support at 4,354

• The STOXX Europe 50 Index is eyeing the 4,354 support level
• Bollinger analysis indicates upper Band® is at 4,468

In the midst of a 14 day bullish trend, Friday's session put the brakes on the ongoing uptrend — the STOXX Europe 50 Index retained its composure around the 4,402.52 level after dropping 0.14%.

The index has been trending positively for about a month. Having set a significant low of 3,279 6 months ago, the STOXX Europe 50 Index is trading 34.45% higher.

Trend-following investors would be interested to note that EuroSTOXX made an initial breakout above its 5 day Simple Moving Average at 4,386, a potential indicator of a newly emerging bullish phase. Analysis based on the asset volatility indicates that the STOXX Europe 50 Index's upper Bollinger Band® is at 4,468, suggesting that a downward move may follow. Support/Resistance levels obtained from chart analysis indicate that the STOXX Europe 50 Index is approaching key support, around 48.64 points away from 4,354. Dipping below could indicate further losses are ahead while a failure to break below this level is likely to be seen positively by market bulls.

Overall, while the STOXX Europe 50 Index has been on an uptrend, technical indicators suggest that it has no obvious direction for the immediate future.

Fundamental indicators – Germany Business Climate Index released earlier showed a marked improvement to 93.6 from the preceding data of 93.2, but fell short of the 94 figure forecast by a consensus of market analysts.

While the STOXX Europe 50 Index was pretty flat Friday, mixed performances were seen elsewhere as KOSPI Composite Index lost 0.82% Friday and closed at 2,544.4. Hang Seng is down to 19,960, losing 115.79 points, after ending the previous session around 20,076.

Upcoming fundamentals: Euro Zone ECB's Enria speech is scheduled tomorrow at 08:00 UTC.