| 
May 28, 2023- The CCI indicator has fallen below -100 – a bearish signal
- Market bulls strengthened by lower Bollinger Band® currently at 7,282.72
While CAC 40 was in the midst of a 5 day downtrend— in which it lost a total of 2.31%— A possible reversal detected from Friday; CAC 40 rose 89.91 points to close at 7,319.18 Friday which makes for a move of 1.24%.
The index has been trending lower for about a month. After hitting an important low of 15.42 approximately 8 months ago, CAC 40 has bounced back 46,782% since.
Concerning technical analysis and more specifically, trend indicators, 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. Analysis based on the asset volatility indicates that CAC 40's lower Bollinger Band® is at 7,282.72, indicating that the market is oversold and fertile for new buyers.
Overall, the technical outlook suggests CAC 40 is likely to remain muted for the immediate future, with no clear-cut direction.
CAC shows positive signs, other assets are also on par: Nasdaq went up by 2.19% Friday, and closed at 12,976. S&P 500 increases 1.3% Friday and closed at 4,151.28.
At the same time, Hang Seng is down to 18,747, losing 353.08 points, after ending the previous session around 19,100.
