The STOXX Europe 50 Index pushes through key support at 4,328.59; eyes 4,307.8 as next hurdle

• The STOXX Europe 50 Index breaks 30.72 points below established support around 4,328.59
• The STOXX Europe 50 Index looks below 4,327.62 (21 day Simple Moving Average) as signpost for new negative trend

The STOXX Europe 50 Index is on a 5 day downtrend Today is looking a bit better: the STOXX Europe 50 Index is trading at 4,359.31 after closing the previous day at 4,358.

The index has been trending positively for about a month. 7 days ago the STOXX Europe 50 Index reached a significant high of 4,408.59 but has consequently lost 1.15% since then.

EuroSTOXX made an initial break below its 21 day Simple Moving Average at 4,327.62, a possible indication of a forthcoming negative trend. The STOXX Europe 50 Index fell below the 4,328.59 support zone and moved 30.72 points beyond it; the next level of support with significant buyer interest is estimated at 4,307.8.

Despite the market lacking direction, technical chart analysis strongly suggests the STOXX Europe 50 Index is positioned for a downward move in the near term.

Fundamental indicators – Unemployment Change in Germany fell short of market expectations (10,000) with a reading of 24,000, continuing the decline from the previous figure of 16,000.

While the STOXX Europe 50 Index is pretty flat so far today, mixed performances are seen elsewhere as Nikkei moves up 1.4% to trade around 28,856. FTSE climbs 0.5% to trade around 7,870.57. Dow Jones increases 0.71% to trade around 34,068.

Upcoming fundamentals: tomorrow at 09:00 UTC data for Euro Zone GDP will be released, with an expected decline to -0.1 from the preceding figure of 0.3.