- Price action backs away from resistance at 3,937.33 despite bullish mood
- Upper Bollinger Band® currently at 3,968.29
The STOXX Europe 50 Index displays further gains following a recent trend of 10 days and 289.6 points. The STOXX Europe 50 Index lived up to expectations yesterday by maintaining its set course — the STOXX Europe 50 Index recovered from the previous trading session's losses and went up to 3,899.37 yesterday after it traded lower at 3,890.17.
The index has been trending positively for about a month. The STOXX Europe 50 Index hit a significant low of 3,279 around a month ago, but has since recovered 18.41%.
Despite posting gains on yesterday, EuroSTOXX slid below its 3 day Simple Moving Average at 3,890.37 during the last session — an early indicator that a negative trend could be emerging. Bollinger Band® analysis indicates that current price action is approaching the upper band at 3,968.29, thereby suggesting that the STOXX Europe 50 Index is becoming overvalued. Although the STOXX Europe 50 Index is appreciating today after rising as high as 3,910.17, price action is now slowing and consolidating around 37.96 points below the 3,937.33 resistance level.
Technical analysis suggests there could be an imminent reversal for the STOXX Europe 50 Index.
Fundamental indicators – Italy Consumer Price Index released yesterday at 09:00 UTC with a figure of 3.4%, while the previous figure was 0.3%.
At the same time, after ending yesterday's session at 2,477.45, KOSPI Composite Index lost 34.45 points and is trading around 2,443. Nasdaq lost 1.54% yesterday and closed at 11,358. Hang Seng is down to 18,046, losing 210.82 points, after ending the previous session around 18,256.
Upcoming fundamentals: Euro Zone Consumer Price Index is expected today at 10:00 UTC.