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May 21, 2023- Medium-term trend indication has turned positive as the MACD index generated a crossover buy signal
- The lower Bollinger Band® is currently at 7,316 while the higher band is at 7,562
Recent gains came after 12 days of trading sideways, Friday's session shows improvement: CAC 40 improves 0.61% to close at 7,492 Friday.
The index has been trending positively for about 2 months. CAC 40 hit a significant low of 15.42 around 8 months ago, but has since recovered 48,200%.
Trend-following investors would be interested to note that the MACD index is indicating that momentum is shifting from bearish to bullish following a positive crossover. When the MACD rises above the signal line, it is typically considered to be a bullish development favoring long positions. Asset volatility analysis shows that Bollinger Band® analysis indicates that current price action is approaching the upper band at 7,562, thereby suggesting that CAC 40 is becoming overvalued.
Overall, the technical outlook suggests CAC is likely to remain muted for the immediate future, with no clear-cut direction.
CAC 40 shows positive signs, other assets are also on par: ASX 200 increases 0.59% Friday and closed at 7,236.8. KOSPI Composite Index added 0.89% and closed around 2,515.4 Friday.
At the same time, after ending Friday's session at 19,727, Hang Seng lost 276.68 points and is trading around 19,451.
