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April 11, 2023
- Price action is gradually approaching a key resistance hurdle at 4,345.46
- The lower Bollinger Band® is currently at 4,151.46 while the higher band is at 4,369.75
The STOXX Europe 50 Index continues a 6 day surge, reaping a total of 5.79%. Heading in the same direction for now — the STOXX Europe 50 Index is rallying again to 4,334 (up 24.55 points), after erasing earlier gains.
The STOXX Europe 50 Index has recovered 31.42% since descending to a significant low of 3,279 around 6 months ago.
Support/Resistance levels obtained from chart analysis indicate that EuroSTOXX could be slowing down soon as it approaches resistance at 4,345.46. Of course, crossing it might suggest further gains are ahead. Concerning technical analysis and more specifically, trend indicators, the Commodity Channel Index (CCI) indicator is above +100, meaning the market price is unusually high compared to the rolling average. According to asset volatility analysis, Bollinger Band® analysis indicates that current price action is approaching the upper band at 4,369.75, thereby suggesting that the STOXX Europe 50 Index is becoming overvalued.
Overall, while the STOXX Europe 50 Index has been on an uptrend, technical indicators suggest that it has no obvious direction for the immediate future.
Fundamental indicators – fresh Retail Sales data released in Euro Zone matched analyst forecasts with a reading of -0.8% — a backwards step from its previous reading of 0.8%.
The STOXX Europe 50 Index shows positive signs, other assets are also on par: ASX 200 is up 1.26%. KOSPI Composite Index is up 1.42%. Nikkei climbs 1.05% to trade around 27,923.
Upcoming fundamentals: Euro Zone ECB's De Guindos speech set for tomorrow at 12:30 UTC.
