- Market price rises 64.74 points beyond key Fib handle of 3,419.41
- The lower Bollinger band is currently at 3,260.31 while the higher band is at 3,505
Having added to its 110.11 points increase during 4 days of gains, Yesterday continued on the same track for the STOXX Europe 50 Index — after dipping down to 3,450, the STOXX Europe 50 Index regained earlier losses and reaches 3,484.
Having set a significant high of 4,392 19 days ago, the STOXX Europe 50 Index is trading 4.96% lower.
EuroSTOXX made an initial breakout above its 21 day Simple Moving Average at 3,390.22, a potential indicator of a newly emerging bullish phase. Price action overcame a known Fibonacci resistance level at 3,419.41 by around 64.74 points with prices hammering out a 3,450 – 3,492.25 session range. Despite this, the STOXX Europe 50 Index could be slowing down soon as it approaches resistance at 3,475.78. Of course, crossing it might suggest further gains are ahead. The STOXX Europe 50 Index's upper Bollinger band is at 3,505, this is a slight indication of a slowdown.
According to technical analysis, it looks as if the STOXX Europe 50 Index likely to continue pointing upward in the short term.
Fundamental indicators – Italy Consumer Price Index came out at 0.3%, while a consensus of analysts was expecting 0.3%.
The STOXX Europe 50 Index shows positive signs, other assets are also on par: notably, S&P 500 rose 2.65% yesterday and closed at 3,583. ASX 200 is trading around 6,779.2 after ending yesterday's session at 6,664.4 (up 1.72% today). Nasdaq added 3.43% and closed around 10,321 yesterday.
Upcoming fundamentals: Euro Zone Consumer Price Index is expected tomorrow at 09:00 UTC.