- Price action honing in on likely support at 4,131.64
- The STOXX Europe 50 Index's upper Bollinger Band® is at 4,245 which indicates a further downward move may follow.
Though in the midst of an 8 day uptrend, gaining a total of 1.57%, (83.73 points), The prevailing bullish trend is beginning to fade following yesterday's downbeat session. The STOXX Europe 50 Index dropped 19.37 points early on and stayed at 4,158.63.
The index has been trending positively for about a month. The STOXX Europe 50 Index has managed to gain 7.08% so far this year despite trading at lows around 3,279 previously.
EuroSTOXX's upper Bollinger Band® is at 4,245 which indicates a further downward move may follow. In contrast, despite being in the red so far in the current trading session, the STOXX Europe 50 Index peaked above its 10 day Simple Moving Average around 4,152.38 — typically an early indicator of a new bullish trend beginning to emerge. The STOXX Europe 50 Index could begin to recover as it approaches significant support, now 27 points away from 4,131.64. Dipping below could be an indication that further losses are ahead.
Overall, looking at the technical analysis landscape, it seems that although indicators are mixed and some are pointing in different directions further drawbacks may be next for the STOXX Europe 50 Index.
Fundamental indicators – data from France concerning Consumer Spending was released today at 06:30 UTC. Newly published figures emphasized continued decline from last month's figure of 0.6% to -1.3% this month.
In the meantime, negative performances are also seen in other markets, Nasdaq is down to 11,400, losing 221.71 points, after ending the previous session around 11,622. Hang Seng is down to 21,700, losing 369.73 points, after ending the previous session around 22,070. S&P 500 is down to 4,017.77, losing 52.79 points, after ending the previous session around 4,070.56.
Upcoming fundamentals: today at 08:55 UTC data for Germany Unemployment Change will be released, with an expected decline to 5,000 from the preceding figure of -13,000.