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May 02, 2023
- The STOXX Europe 50 Index hasn't been as low as 4,291.66 in 3 weeks.
- Next support is currently 28.06 points away at 4,266.79
The STOXX Europe 50 Index's bearish run has lasted 7 days so far (-49.28 points). More of the same from today's session: the STOXX Europe 50 Index dropped 64.31 points early on and stayed at 4,295.
The index has been trending positively for about a month. The STOXX Europe 50 Index is now trading 32.94% above the significant low (3,279) it slumped to 7 months ago.
With regards to technical trend indicators, chart analysis show that EuroSTOXX made an initial break below its 21 day Simple Moving Average at 4,330.69, a possible indication of a forthcoming negative trend. According to asset volatility analysis, Bollinger Bands® shows an indication of recovery: the lower band is at 4,255.6, a low enough level to, generally, suggest that the STOXX Europe 50 Index is trading below its fair value. Chart analysis suggests the STOXX Europe 50 Index could begin to recover as it approaches significant support, now 28.06 points away from 4,266.79. Dipping below could be an indication that further losses are ahead.
Overall, the technical outlook suggests the STOXX Europe 50 Index is likely to remain muted for the immediate future, with no clear-cut direction.
Fundamental indicators – Euro Zone Consumer Price Index came out at 7%, while a consensus of analysts was expecting 7%.
In the meantime, negative performances are also seen in other markets, CAC lost 1.45% today and closed at 7,491.5. FTSE slips 1.24% today and closed at 7,870.57. After ending today's session at 34,052, Dow Jones lost 351.7 points and is trading around 33,700.
Upcoming fundamentals: Euro Zone Unemployment Rate figure is projected at 6.6. It previously stood at 6.6; data will be released tomorrow at 09:00 UTC.
