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June 20, 2023- The STOXX Europe 50 Index is eyeing the 4,348.54 support level
- The STOXX Europe 50 Index looks below 4,378.64 (3 day Simple Moving Average) as signpost for new negative trend
After a 13 day of trading sideways Yesterday's session suggests a further slow down: after finishing Friday at 4,362.38, the STOXX Europe 50 Index went up to 4,365.23 before paring its losses and closing at 4,342.
The index has been trending positively for about 3 months. The STOXX Europe 50 Index hit a significant low of 3,279 around 8 months ago, but has since recovered 33.04%.
EuroSTOXX made an initial break below its 3 day Simple Moving Average at 4,378.64, a possible indication of a forthcoming negative trend. The STOXX Europe 50 Index's upper Bollinger Band® is at 4,406 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 6.41 points away from 4,348.54. Dipping below could be an indication that further losses are ahead.
Several technical indicators are adding weight to the bearish momentum seen yesterday and forecasting the STOXX Europe 50 Index to extend its recent losses.
Fundamental indicators – Germany Producer Price Index fell short of the -0.7% projections, with new data of -1.4%.
In the meantime, negative performances are also seen in other markets, Hang Seng lost 1.54% yesterday and closed at 19,900. DAX is down to 16,079, losing 120.88 points, after ending the previous session around 16,200.
Other assets are showing positive performances as ASX 200 improves 0.86% yesterday and closed at 7,295.
Upcoming fundamentals: Germany Buba President Nagel speech is scheduled for tomorrow at 13:45 UTC.
