2014.06.1005:59:48UTC+00European shares wind down after three-day winning streak

European stocks went down on Tuesday after its three straight days of incline that was sustained by the European Central Bank strategy measures announced on Thursday. Technical charts, however, indicate that a regional index had been overbrought.

The pan-European FTSEurofirst 300 index lost 0.1% today falling to 1,392.02 pips. The blue-chip of euro zone, Euro STOXX 50 index was also down, losing 0.2% with its current standing at 3,299.54 pips at 07:26 am in Europe. Both FTSEurofirst 300 and STOXX 50 are indexes that had not traded at highs seen for the last three days since 2008. The increase is highly attributed to the ECB measures taken to deflect inflation in the euro zone.

The increase, however, had put the Euro STOXX 50 in 'overbrought' territory for the first time since October according to the 14-day Relative Strength Index chart which indicates momentum. The index in discussion boosted 60% in the last 2 years with the help of ECB activity.

Analyst at Trading Central, Philippe Delabarre said that momentum could indeed slow down on a short-term basis but it will a rise again.