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June 04, 2023- The STOXX Europe 50 Index drawing closer to significant resistance at 4,349 with potentially further upside ahead
- Market price rises 34.13 points beyond 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%.
With regards to technical trend indicators, chart analysis show that 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. Analysis based on the asset volatility indicates that 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. Chart analysis suggests 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.
Other markets are also showing gains as Hang Seng leaps up 4% Friday and closed at 18,217. Dow Jones surges 2.12% Friday and closed at 33,062. FTSE added 1.56% and closed around 7,490.27 Friday.
Upcoming fundamentals: Germany Trade Balance (Apr) is expected tomorrow at 06:00 UTC.
