- 53.4 points is the STOXX Europe 50 Index's largest daily jump in 3 weeks and a half.
- Price action is gradually approaching a key resistance hurdle at 4,360
After 10 days of level trading, the STOXX Europe 50 Index went up. Yesterday's session shows improvement: the STOXX Europe 50 Index went up to 4,340.43 yesterday, gaining 1.25%.
The index has been trending positively for about a month. Having soared to a high of 4,408.59 approximately 15 days ago, the STOXX Europe 50 Index is now trading 2.76% lower.
Technical analysis trend indicators suggest that EuroSTOXX made an initial breakout above its 5 day Simple Moving Average at 4,319.28, a potential indicator of a newly emerging bullish phase. Asset volatility analysis shows that Bollinger Band® analysis indicates that current price action is approaching the upper band at 4,425.71, thereby suggesting that the STOXX Europe 50 Index is becoming overvalued. Support/Resistance levels obtained from chart analysis indicate that the STOXX Europe 50 Index could be slowing down soon as it approaches resistance at 4,360. Of course, crossing it might suggest further gains are ahead.
With market volatility ebbing, the current technical outlook indicates the STOXX Europe 50 Index will remain range-bound for the immediate future.
Fundamental indicators – Euro Zone CFTC EUR speculative net positions released yesterday at 20:30 UTC with a figure of 173,500, while the previous figure was 169,400.
The STOXX Europe 50 Index shows positive signs, other assets are also on par: notably, Dow Jones rose 1.65% yesterday and closed at 33,128. S&P 500 added 1.85% and closed around 4,061.22 yesterday. Nasdaq added 2.25% and closed around 11,966 yesterday.