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May 26, 2023- CAC hasn't been as low as 7,208.44 in 8 weeks and a half.
- Price action oscillating around key resistance at 7,300.17
While in the midst of a 4 day downtrend, Today's positive session could indicate a brief correction amid a broader downtrend, or, the start of a potential reversal. Tentatively higher from an earlier low of 7,208.44, CAC 40 is up to 7,319.18 today, adding 89.91 points, or 1.24%, to yesterday's closing price of 7,229.27.
The index has been trending lower for about a month. Having set a significant low of 15.42 8 months ago, CAC 40 is trading 46,782% higher.
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. Crossed the 7,294.25 Fibonacci level, next level is at 7,361. Asset volatility analysis shows that CAC's lower Bollinger Band® is at 7,290.79, indicating that the market is oversold and fertile for new buyers. CAC chart analysis: CAC 40 could be slowing down soon; it is getting close to the resistance line and is now at 7,300.17, only 19 points away. Crossing the resistance line could, however, suggest that further gains are ahead.
With market volatility ebbing, the current technical outlook indicates CAC will remain range-bound for the immediate future.
Fundamental indicators – Germany GDP released earlier showed a marked improvement to -0.3 from the preceding data of -0.4, but fell short of the -0.1 figure forecast by a consensus of market analysts.
CAC 40 shows positive signs, other assets are also on par: Nasdaq is up 1.93%. EuroSTOXX rises 1.59% to trade around 4,337.5.
Meanwhile, Hang Seng is down to 18,747, losing 353.08 points, after closing at 19,100 in the preceding trading session.
Upcoming fundamentals: Euro Zone CFTC EUR speculative net positions is expected today at 20:30 UTC.
