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May 10, 2023
- Price action honing in on likely support at 4,304
- The STOXX Europe 50 Index's upper Bollinger Band® is at 4,424.22 which indicates a further downward move may follow.
The STOXX Europe 50 Index's downtrend has seen it decline 1.94% in 11 days Yesterday's session continued down the same path: overall, the STOXX Europe 50 Index shed around 25.65 points or 0.59% and ended yesterday's session at 4,323.
The index has been trending positively for about a month. The STOXX Europe 50 Index hit a significant low of 3,279 around 7 months ago, but has since recovered 32.62%.
EuroSTOXX made an initial break below its 5 day Simple Moving Average at 4,317.39, a possible indication of a forthcoming negative trend. The STOXX Europe 50 Index's upper Bollinger Band® is at 4,424.22 which indicates a further downward move may follow. Despite this, the STOXX Europe 50 Index could begin to recover as it approaches significant support, now 18.96 points away from 4,304. Dipping below could be an indication that further losses are ahead.
Looking forward, the STOXX Europe 50 Index is poised to extend its strong downtrend and continue declining.
In the meantime, negative performances are also seen in other markets, CAC slumps 0.59% yesterday and closed at 7,441. Nasdaq is down to 12,180, losing 77.36 points, after ending the previous session around 12,257. After ending yesterday's session at 4,138, S&P 500 lost 18.83 points and is trading around 4,119.17.
Upcoming fundamentals: Germany Consumer Price Index is expected today at 06:00 UTC.
