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May 17, 2023
- Next support is currently 15.44 points away at 4,300
- The lower Bollinger Band® is currently at 4,270.35 while the higher band is at 4,419.37
With around 15 days of flat trade under its belt, Pointing in a similar direction, yesterday's session was more of the same — without a clear direction, the STOXX Europe 50 Index closed at 4,315.51 while ranging between 4,298.31 and 4,328.78.
The index has been trending positively for about 2 months. The STOXX Europe 50 Index hit a significant low of 3,279 around 7 months ago, but has since recovered 31.64%.
With regards to technical trend indicators, chart analysis show that EuroSTOXX made an initial break below its 10 day Simple Moving Average at 4,315.78, a possible indication of a forthcoming negative trend. Analysis based on the asset volatility indicates that the STOXX Europe 50 Index's upper Bollinger Band® is at 4,419.37 and the lower is 4,270.35. Technical analysis of the STOXX Europe 50 Index's past price action reveals multiple support and resistance levels: the STOXX Europe 50 Index is approaching key support, around 15.44 points away from 4,300. 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.
With market volatility ebbing, the current technical outlook indicates the STOXX Europe 50 Index will remain range-bound for the immediate future.
Fundamental indicators – Euro Zone ZEW Economic Sentiment Index came out at -9.4, while a consensus of analysts was expecting -1.
While the STOXX Europe 50 Index was pretty flat yesterday, mixed performances were seen elsewhere as Dow Jones lost 1% yesterday and closed at 33,349. Nikkei is trading around 30,100 after ending yesterday's session at 29,843 (up 0.84% today). After ending yesterday's session at 4,136.28, S&P 500 lost 26.28 points and is trading around 4,110.
Upcoming fundamentals: Euro Zone Consumer Price Index is expected today at 09:00 UTC.
