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May 05, 2023
- The MACD is significantly below its signal line which suggests that the existing bearish sentiment is beginning to swing around toward a more bullish outlook.
- Lower Bollinger Band® at around 7,245.18
Having fallen 173.17 points in 8 days, Yesterday's session continued the recent downtrend: CAC 40 decreases 0.85% to close at 7,340.77 yesterday.
The index has been trending positively for about a month. CAC 40 hit a significant low of 15.42 around 7 months ago, but has since recovered 47,900%.
The MACD is significantly below its signal line, which suggests the market is running out of bearish momentum and could revert to a positive outlook as bulls regain control. CAC 40's lower Bollinger Band® is at 7,245.18, indicating that the asset has overextended to the downside and could, therefore, bounce back as buyers look for bargains.
Technical analysis indicates that CAC 40 (currently on a downtrend) might reverse course and start pointing upward in the short term.
Fundamental indicators – Euro Zone Interest Rate came out at 3.75, while a consensus of analysts was expecting 3.75.
In the meantime, negative performances are also seen in other markets, after ending yesterday's session at 7,788.37, FTSE lost 85.73 points and is trading around 7,702.64. Dow Jones retreats 0.86% yesterday and closed at 33,400.
Other assets are showing positive performances as notably, Hang Seng rose 1.27% yesterday and closed at 19,700.
Upcoming fundamentals: as things stand, upcoming Germany Factory Orders data is projected to fall short of market expectations with newly published data of -2.2%, following on from the preceding figure of 4.8%. New data is set to be published today at 06:00 UTC.
