The STOXX Europe 50 Index honing in 4,401.68 as near-term resistance to further upside

• The STOXX Europe 50 Index drawing closer to significant resistance at 4,401.68 with potentially further upside ahead
• Upper Bollinger Band® currently at 4,455.71

The STOXX Europe 50 Index is on a 13 day uptrend, gaining a total of 7.29%. Today's session so far looks to be heading in the same direction — the STOXX Europe 50 Index goes up to 4,395, having dipped down to 4,367.56 earlier.

The index has been trending positively for about a month. The STOXX Europe 50 Index is now trading 33.72% above the significant low (3,279) it slumped to 6 months ago.

As the day gets underway, chart analysis suggests EuroSTOXX is 6.6 points away from testing key resistance at 4,401.68. Peaking above this level could inspire market bulls and open the path to further gains. Trend-focused traders would be interested to note that the STOXX Europe 50 Index made an initial breakout above its 5 day Simple Moving Average at 4,386, a potential indicator of a newly emerging bullish phase. According to asset volatility analysis, Bollinger Band® analysis indicates that current price action is approaching the upper band at 4,455.71, thereby suggesting that the STOXX Europe 50 Index is becoming overvalued.

Notwithstanding the STOXX Europe 50 Index's appreciation in recent days, the technical outlook suggests its bullish run is now fading.

Fundamental indicators – Euro Zone Manufacturing PMI came out at 45.5, while a consensus of analysts was expecting 48.

Meanwhile, Hang Seng closed at 20,076 (down 1.57%). KOSPI Composite Index is down to 2,544.4, losing 18.6 points, after closing at 2,563 in the preceding trading session. ASX 200 is trading around 7,330.4 (down 31.8 points).

Upcoming fundamentals: Euro Zone CFTC EUR speculative net positions is scheduled for today at 20:30 UTC.