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May 27, 2023- Today's gain is the STOXX Europe 50 Index largest daily percentage gain since Mar 29.
- Price action broke 48.11 points above known Fib level (4,289.39)
The STOXX Europe 50 Index is on a 3 day uptrend, gaining a total of 1.73%. Yesterday's session pointed in the same direction — the STOXX Europe 50 Index rallied 67.86 points (1.59%) deep into the session, reaching 4,337.5.
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 30.21%.
Technical chart analysis shows EuroSTOXX could be slowing down soon as it approaches resistance at 4,368.62. Of course, crossing it might suggest further gains are ahead. Trend and momentum analysis indicates that the STOXX Europe 50 Index made an initial breakout above its 50 day Simple Moving Average at 4,303.57, a potential indicator of a newly emerging bullish phase. Crossed the 4,289.39 Fibonacci level, next level is at 4,408.59. Asset volatility analysis shows that Bollinger Band® analysis indicates that current price action is approaching the upper band at 4,401.58, 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.
Fundamental indicators – Euro Zone CFTC EUR speculative net positions released yesterday at 20:30 UTC with a figure of 173,700, while the previous figure was 187,100.
Other markets are also showing gains as Nasdaq is trading around 12,976 after ending yesterday's session at 12,700 (up 2.19% today). S&P 500 climbs 1.3% yesterday and closed at 4,151.28.
Meanwhile, after ending yesterday's session at 19,100, Hang Seng lost 353.08 points and is trading around 18,747.
