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May 07, 2023
- 53.4 points is the STOXX Europe 50 Index's largest daily jump in 3 weeks.
- The STOXX Europe 50 Index drawing closer to significant resistance at 4,360 with potentially further upside ahead
Signs of life: 10 days of level trading might be coming to an end with a gain of 1.55% today Friday's session shows improvement: the STOXX Europe 50 Index went up to 4,340.43 Friday, gaining 1.25%.
The index has been trending positively for about a month. Approximately 16 days ago, the STOXX Europe 50 Index reached a significant high of 4,408.59 but has struggled to hold onto its gains and declined 2.76% since then.
Concerning technical analysis and more specifically, trend indicators, EuroSTOXX made an initial breakout above its 5 day Simple Moving Average at 4,319.28, 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 4,425.71, this is a slight indication of a slowdown. The STOXX Europe 50 Index's notable support and resistance levels: the STOXX Europe 50 Index could be slowing down soon as it approaches resistance at 4,360. Of course, crossing it might suggest further gains are ahead.
With market volatility ebbing, the current technical outlook indicates the STOXX Europe 50 Index will remain range-bound for the immediate future.
Other markets are also showing gains as Dow Jones is trading around 33,674 after ending Friday's session at 33,128 (up 1.65% today). S&P 500 is trading around 4,136.25 after ending Friday's session at 4,061.22 (up 1.85% today). Nasdaq soars 2.25% Friday and closed at 11,966.
Upcoming fundamentals: projections for Germany Industrial Production are set for a continuation of decline with -1.3% while previous data was 2%; data will be released tomorrow at 06:00 UTC.
