- Despite dipping below 3,934 as support, market bulls are still in control
- The STOXX Europe 50 Index explored above its 10 day Simple Moving Average around 3,955.43, a potential early indicator of a new bullish phase to come
Though in the midst of a 23 day uptrend, gaining a total of 9.63%, (363.35 points), Today's session suggests run might be coming to an end — the STOXX Europe 50 Index slid down from 3,956.53 to 3,939.19, taking a 17.34 points loss (0.44%)
The index has been trending positively for about a month. The STOXX Europe 50 Index hit a significant low of 3,279 around 2 months ago, but has since recovered 20.66%.
Trend-focused traders would be interested to note that despite being in the red so far in the current trading session, EuroSTOXX peaked above its 10 day Simple Moving Average around 3,955.43 — typically an early indicator of a new bullish trend beginning to emerge. According to asset volatility analysis, the STOXX Europe 50 Index's upper Bollinger Band® is at 4,030.78 which indicates a further downward move may follow. Technical chart analysis shows the STOXX Europe 50 Index bounced after reaching the 3,934 support zone, climbing 5.09 points above it.
Notwithstanding the STOXX Europe 50 Index's appreciation in recent days, the technical outlook suggests its bullish run is now fading.
Fundamental indicators – data for Germany Factory Orders published today at 07:00 UTC came out at 0.8%, beating projections of 0.1% and showing improvement over the preceding figure of -2.9%.
In the meantime, negative performances are also seen in other markets, after ending today's session at 3,999, S&P 500 lost 57.74 points and is trading around 3,941.26. Nasdaq stumbles 2% today and closed at 11,240. KOSPI Composite Index stumbles 1.08% today and closed at 2,419.32.
Upcoming fundamentals: Germany Industrial Production projected to come out at -0.6% — worse than previous data of 0.6%; data will be released tomorrow at 07:00 UTC.