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March 15, 2023
- The STOXX Europe 50 Index hasn't been as low as 4,088.58 in 7 weeks.
- Price action broke 5.13 points above known Fib level (4,174.34)
With a daily low of 4,088.58, the STOXX Europe 50 Index closed yesterday at 4,179.47, after ending Monday at 4,096.54 and gaining 82.93 points (2.02%).
Having soared to a high of 4,313.78 approximately 9 days ago, the STOXX Europe 50 Index is now trading 5.04% lower.
EuroSTOXX made an initial breakout above its 50 day Simple Moving Average at 4,184, a potential indicator of a newly emerging bullish phase. Price action overcame a known Fibonacci resistance level at 4,174.34 by around 5.13 points with prices hammering out a 4,088.58 – 4,189 session range. The STOXX Europe 50 Index's lower Bollinger Band® is at 4,148.82, indicating that the market is oversold and fertile for new buyers. On the other hand, note that the STOXX Europe 50 Index could be slowing down soon as it approaches resistance at 4,193.19. Of course, crossing it might suggest further gains are ahead.
Overall, looking at the technical analysis landscape, it seems the STOXX Europe 50 Index likely to continue pointing upward in the short term.
Other markets are also showing gains as CAC went up by 1.86% yesterday, and closed at 7,141.57. FTSE is trading around 7,637 after ending yesterday's session at 7,548.63 (up 1.17% today). S&P 500 leaps up 1.65% yesterday and closed at 3,855.76.
Upcoming fundamentals: Euro Zone Deposit Facility Rate (Mar) is expected tomorrow at 13:15 UTC.
