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June 03, 2023- Price action is gradually approaching a key resistance hurdle at 4,349
- Market price breaks 34.13 points above key Fib handle of 4,289.39
The STOXX Europe 50 Index gained 65.91 points and stayed at the 4,323.52 level.
The index has been trending positively for about 2 months. The STOXX Europe 50 Index hit a significant low of 3,279 around 8 months ago, but has since recovered 29.84%.
Concerning technical analysis and more specifically, trend indicators, EuroSTOXX made an initial breakout above its 50 day Simple Moving Average at 4,304, a potential indicator of a newly emerging bullish phase. Crossed the 4,289.39 Fibonacci level, next level is at 4,408.59. According to asset volatility analysis, Bollinger Band® analysis indicates that current price action is approaching the upper band at 4,384, thereby suggesting that the STOXX Europe 50 Index is becoming overvalued. The STOXX Europe 50 Index chart analysis: the STOXX Europe 50 Index could be slowing down soon as it approaches resistance at 4,349. 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.
Fundamental indicators – Euro Zone CFTC EUR speculative net positions released yesterday at 20:30 UTC with a figure of 165,700, while the previous figure was 173,700.
The STOXX Europe 50 Index shows positive signs, other assets are also on par: Hang Seng added 4% and closed around 18,217 yesterday. Dow Jones jumps 2.12% yesterday and closed at 33,062. Notably, FTSE rose 1.56% yesterday and closed at 7,490.27.
