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July 01, 2023- Price action broke 28 points above known Fib level (4,371)
- Upper Bollinger Band® currently at 4,413.67
Keeping up its 6 days of climbing (+85.89 points), Yesterday's session pointed in the same direction — the STOXX Europe 50 Index rallied 44.31 points and maintained the 4,399 level.
The index has been trending positively for about 3 months. The STOXX Europe 50 Index hit a significant low of 3,279 around 9 months ago, but has since recovered 32.8%.
Trend-following investors 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. Price action overcame a known Fibonacci resistance level at 4,371 by around 28 points with prices hammering out a 4,346.4 – 4,409.5 session range. Asset volatility analysis shows that the STOXX Europe 50 Index's upper Bollinger Band® is at 4,413.67, this is a slight indication of a slowdown. Technical analysis shows that the STOXX Europe 50 Index could be slowing down soon as it approaches resistance at 4,423.59. Of course, crossing it might suggest further gains are ahead.
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 – Euro Zone Consumer Price Index released yesterday at 09:00 UTC with a figure of 5.5%, while the previous figure was 6.1%.
Other markets are also showing gains as CAC increases 1.19% yesterday and closed at 7,312.73. FTSE is trading around 7,531.53 after ending yesterday's session at 7,471.69 (up 0.8% today). S&P 500 went up by 1.23% yesterday, and closed at 4,450.38.
