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April 08, 2023
- The STOXX Europe 50 Index drawing closer to significant resistance at 4,317.51 with potentially further upside ahead
- The lower Bollinger Band® is currently at 4,153 while the higher band is at 4,365.72
The STOXX Europe 50 Index is on a 6 day uptrend, gaining a total of 5.2%. Thursday's session pointed in the same direction — after closing at 4,298.36 Wednesday, the STOXX Europe 50 Index maintained a strong bullish bias that helped the index close higher at 4,309.45 Thursday. However, market bears ensured the the STOXX Europe 50 Index topped out at 4,313.74 and that by the end of the session, the market had marked out a distinct 4,294 to 4,313.74 range.
The STOXX Europe 50 Index hit a significant low of 3,279 around 6 months ago, but has since recovered 31.09%.
A study of the STOXX Europe 50 Index's historical price actions shows EuroSTOXX could be slowing down soon as it approaches resistance at 4,317.51. Of course, crossing it might suggest further gains are ahead. Technical analysis trend indicators suggest that the STOXX Europe 50 Index made an initial breakout above its 3 day Simple Moving Average at 4,309, a potential indicator of a newly emerging bullish phase. Analysis based on the asset volatility indicates that Bollinger Band® analysis indicates that current price action is approaching the upper band at 4,365.72, thereby suggesting that the STOXX Europe 50 Index is becoming overvalued.
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 CFTC EUR speculative net positions released yesterday at 20:30 UTC with a figure of 143,400, while the previous figure was 145,000.
Other markets are also showing gains as FTSE added 1.03% and closed around 7,663 Thursday. KOSPI Composite Index is trading around 2,490.41 after ending Thursday's session at 2,459.23 (up 1.27% today). Nasdaq went up by 0.76% Thursday, and closed at 12,100.
