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June 17, 2023- Fibonacci resistance at 4,408.59 holds firm with prices retreating 13.77 points
- The lower Bollinger Band® is currently at 4,237 while the higher band is at 4,410
The sentiment that generated 107.51 points in cumulative gains over the past 12 days was further evident for the STOXX Europe 50 Index. The STOXX Europe 50 Index stayed on track yesterday: the STOXX Europe 50 Index closed yesterday at 4,394.82 (with a daily low of 4,364) after ending Thursday at 4,365 and gaining 0.68%.
The index has been trending positively for about 3 months. The STOXX Europe 50 Index hit a significant low of 3,279 around 8 months ago, but has since recovered 33.12%.
Chart analysis indicates EuroSTOXX is 20.54 points away from testing key resistance at 4,415.36. Peaking above this level could inspire market bulls and open the path to further gains. Trend and momentum analysis indicates that the Commodity Channel Index (CCI) indicator is above +100, meaning the market price is unusually high compared to the rolling average. Fibonacci-minded traders witnessed a key Fib resistance level of 4,408.59 holding firm – an indicator of highly concentrated supply around this level. According to asset volatility analysis, Bollinger Band® analysis indicates that current price action is approaching the upper band at 4,410, 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 Consumer Price Index released yesterday at 09:00 UTC with a figure of 6.1%, while the previous figure was 7%.
Other markets are also showing gains as ASX 200 added 1.06% and closed around 7,175.3 yesterday. CAC went up by 1.34% yesterday, and closed at 7,388.65. Hang Seng is trading around 20,040 after ending yesterday's session at 19,829 (up 1.07% today).
