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June 18, 2023- Bullish streak halted at key Fibonacci level of 4,408.59
- Upper Bollinger Band® currently at 4,410
The STOXX Europe 50 Index continues a 12 day uptrend, gaining a total of 3.22%. Friday's session pointed in the same direction — the STOXX Europe 50 Index went up to 4,394.82 Friday, gaining 0.68%.
The index has been trending positively for about 3 months. 8 months ago, the STOXX Europe 50 Index fell to a low of 3,279 but has since recovered 33.12%.
Chart analysis indicates EuroSTOXX could be slowing down soon as it approaches resistance at 4,415.36. Of course, crossing it might suggest further gains are ahead. Trend-focused traders would be interested to note that the Commodity Channel Index (CCI) indicator is above +100, meaning the market price is unusually high compared to the rolling average. Fibonacci-minded traders witnessed a key Fib resistance level of 4,408.59 holding firm – an indicator of highly concentrated supply around this level. Analysis based on the asset volatility indicates that Bollinger Band® analysis indicates that current price action is approaching the upper band at 4,410, 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.
The STOXX Europe 50 Index shows positive signs, other assets are also on par: notably, ASX 200 rose 1.06% Friday and closed at 7,175.3. CAC added 1.34% and closed around 7,291 Friday. Hang Seng goes up 1.07% Friday and closed at 19,829.
