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June 13, 2023- The STOXX Europe 50 Index drawing closer to significant resistance at 4,336 with potentially further upside ahead
- The STOXX Europe 50 Index made an initial breakout above its 50 day Simple Moving Average at 4,310.22, a potential indicator of a newly emerging bullish phase.
The STOXX Europe 50 Index continues an 8 day uptrend, gaining a total of 1.38%. The STOXX Europe 50 Index lived up to expectations yesterday by maintaining its set course — with a daily low of 4,291, the STOXX Europe 50 Index closed yesterday at 4,316.49, after ending Friday at 4,289.79 and gaining 26.7 points (0.62%).
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 30.82%.
EuroSTOXX made an initial breakout above its 50 day Simple Moving Average at 4,310.22, a potential indicator of a newly emerging bullish phase. Despite this, the STOXX Europe 50 Index is 19.47 points away from testing key resistance at 4,336. Peaking above this level could inspire market bulls and open the path to further gains. Bollinger Band® analysis indicates that current price action is approaching the upper band at 4,371, thereby suggesting that the STOXX Europe 50 Index is becoming overvalued.
According to technical analysis, it looks as if the STOXX Europe 50 Index likely to continue pointing upward in the short term.
Fundamental indicators – Germany Consumer Price Index released today at 06:00 UTC with a figure of -0.1%, while the previous figure was 0.4%.
Other markets are also showing gains as Nikkei added 1.87% and closed around 32,434 yesterday. Notably, Nasdaq rose 1.53% yesterday and closed at 13,259. S&P 500 is trading around 4,339 after ending yesterday's session at 4,299 (up 0.93% today).
Upcoming fundamentals: Germany ZEW Economic Sentiment Index figure is projected at -12.7. It previously stood at -10.7; data will be released today at 09:00 UTC.
