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May 20, 2023
- 4,413 is the STOXX Europe 50 Index's all-time high.
- Known Fib level 4,408.59 serving as battleground for bulls and bears
The STOXX Europe 50 Index is on a 9 day bullish run gaining 78.2 points (2.47%). It was more of the same for the STOXX Europe 50 Index yesterday — with a daily low of 4,368.24, the STOXX Europe 50 Index closed yesterday at 4,395.3, after ending Thursday at 4,367.45 and gaining 27.85 points (0.64%).
The index has been trending positively for about 2 months. The STOXX Europe 50 Index hit a significant low of 3,279 around 7 months ago, but has since recovered 33.19%.
Concerning technical analysis and more specifically, trend indicators, the MACD index is indicating that momentum is shifting from bearish to bullish following a positive crossover. When the MACD rises above the signal line, it is typically considered to be a bullish development favoring long positions. Having stamped out a session range of 4,368.24 to 4,413, Fibonacci-inclined the STOXX Europe 50 Index traders were highly concentrated around active Fibonacci resistance at 4,408.59. Asset volatility analysis shows that the STOXX Europe 50 Index's upper Bollinger Band® is at 4,425.28, this is a slight indication of a slowdown. Technical analysis shows that the STOXX Europe 50 Index could be slowing down soon; it is getting close to the resistance line and is now at 4,422, only 26.72 points away. Crossing the resistance line could, however, suggest that further gains are ahead.
Notwithstanding the STOXX Europe 50 Index's appreciation in recent days, the technical outlook suggests its bullish run is now fading.
Fundamental indicators – Euro Zone CFTC EUR speculative net positions released yesterday at 20:30 UTC with a figure of 187,100, while the previous figure was 179,400.
Other markets are also showing gains as notably, ASX 200 rose 0.59% yesterday and closed at 7,236.8. KOSPI Composite Index improves 0.89% yesterday and closed at 2,515.4.
At the same time, Hang Seng lost 1.4% yesterday and closed at 19,727.
Upcoming fundamentals: Germany Buba Balz speech is scheduled today at 01:00 UTC.
