- The STOXX Europe 50 Index drawing closer to significant resistance at 4,193.19 with potentially further upside ahead
- Market bulls strengthened by lower Bollinger Band® currently at 4,134
While the STOXX Europe 50 Index was in the midst of a 6 day downtrend— in which it lost a total of 4.56%— Today may indicate a change of direction; the STOXX Europe 50 Index spiked to 4,135 today and consolidated before initiating a fresh rally to 4,117. This comes following yesterday's session in which it closed at 4,035.
Having soared to a high of 4,313.78 approximately 10 days ago, the STOXX Europe 50 Index is now trading 6.46% lower.
With regards to technical trend indicators, chart analysis show that the Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored. Asset volatility analysis shows that the STOXX Europe 50 Index's lower Bollinger Band® is at 4,134, indicating that the market is oversold and fertile for new buyers. Chart analysis indicates the STOXX Europe 50 Index could be slowing down soon; it is getting close to the resistance line and is now at 4,193.19, only 76.21 points away. Crossing the resistance line could, however, suggest that 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.
The STOXX Europe 50 Index shows positive signs, other assets are also on par: CAC is trading around 7,025.72 after ending today's session at 6,885.71 (up 2.03% today). Nasdaq added 2.48% and closed around 11,434 today. S&P 500 rallies 1.76% today and closed at 3,892.
Upcoming fundamentals: Euro Zone Consumer Price Index is expected tomorrow at 10:00 UTC.