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June 23, 2023- Price action honing in on likely support at 4,245.59
- Medium-term trend indication turns negative after MACD index generates a crossover sell signal
The STOXX Europe 50 Index's bearish run has lasted 4 days so far (-72.07 points). Yesterday's session continued the recent downtrend: overall, the STOXX Europe 50 Index shed around 18.28 points or 0.42% and ended yesterday's session at 4,304.47.
The index has been trending positively for about 3 months. The STOXX Europe 50 Index has recovered 31.83% since descending to a significant low of 3,279 around 8 months ago.
The MACD index is indicating that momentum is shifting from bullish to bearish following a negative crossover. When the MACD falls below the signal line, it is typically considered to be a bearish development favoring short positions. The STOXX Europe 50 Index's upper Bollinger Band® is at 4,405.48 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 58.88 points away from 4,245.59. 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.
In the meantime, negative performances are also seen in other markets, Nikkei is down to 32,650, losing 614.72 points, after ending the previous session around 33,265. ASX 200 lost 1.42% yesterday and closed at 7,195.5. Hang Seng is down to 18,849, losing 368.98 points, after ending the previous session around 19,218.
Upcoming fundamentals: Spain GDP is projected to outperform its last figure with 0.5, having previously been at 0.2. The figure will be published today at 07:00 UTC.
