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May 30, 2023- The STOXX Europe 50 Index drawing closer to significant resistance at 4,368.62 with potentially further upside ahead
- Price action broke 30.62 points above known Fib level (4,289.39)
The STOXX Europe 50 Index continues a 3 day uptrend, gaining a total of 1.32%. Friday's session pointed in the same direction — the STOXX Europe 50 Index rallied 50.36 points (1.18%) deep into the session, reaching 4,320.
The index has been trending positively for about 2 months. The STOXX Europe 50 Index hit a significant low of 3,279 around 7 months ago, but has since recovered 30.21%.
Trend analysis indicates that EuroSTOXX made an initial breakout above its 50 day Simple Moving Average at 4,303.57, a potential indicator of a newly emerging bullish phase. Crossed the 4,289.39 Fibonacci level, next level is at 4,408.59. Asset volatility analysis shows that Bollinger Band® analysis indicates that current price action is approaching the upper band at 4,400.66, thereby suggesting that the STOXX Europe 50 Index is becoming overvalued. Technical chart analysis shows the STOXX Europe 50 Index is 48.61 points away from testing key resistance at 4,368.62. Peaking above this level could inspire market bulls and open the path to further gains.
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.
Other markets are also showing gains as Nasdaq went up by 2.19% Friday, and closed at 12,976. S&P 500 went up by 1.3% Friday, and closed at 4,205.45. Notably, Dow Jones rose 1% Friday and closed at 32,765.
Upcoming fundamentals: Germany Unemployment Change is projected to outperform its last figure with 14,000, having previously been at 24,000. The figure will be published tomorrow at 07:55 UTC.
