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February 27, 2023
- Price action honing in on likely support at 4,140.45
- Falling prices have precipitated the STOXX Europe 50 Index's approach to its lower Bollinger Band® at 4,154.26
Having fallen 39.08 points in 7 days, More of the same from Friday's session: the STOXX Europe 50 Index slides down from 4,258 to 4,178.82, losing 79.18 points (1.86%) today.
The index has been trending positively for about a month. The STOXX Europe 50 Index hit a significant low of 3,279 around 4 months ago, but has since recovered 29.86%.
Chart analysis indicates EuroSTOXX could begin to recover as it approaches significant support, now 38.37 points away from 4,140.45. Dipping below could be an indication that further losses are ahead. Trend and momentum analysis indicates that the STOXX Europe 50 Index made an initial break below its 21 day Simple Moving Average at 4,227.39, a possible indication of a forthcoming negative trend. According to asset volatility analysis, the STOXX Europe 50 Index's lower Bollinger Band® is at 4,154.26, indicating that the asset has overextended to the downside and could, therefore, bounce back as buyers look for bargains.
Overall, the technical outlook suggests the STOXX Europe 50 Index is likely to remain muted for the immediate future, with no clear-cut direction.
In the meantime, negative performances are also seen in other markets, CAC drops 1.78% Friday and closed at 7,317.43. After ending Friday's session at 15,476, DAX lost 275.7 points and is trading around 15,200. ASX 200 is down to 7,216.4, losing 90.6 points, after ending the previous session around 7,307.
Upcoming fundamentals: France Consumer Price Index is expected tomorrow at 07:45 UTC.
