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April 27, 2023
- The STOXX Europe 50 Index is eyeing 4,323.69 as its nearest support level
- Medium-term trend indication turns negative after MACD index generates a crossover sell signal
Having fallen 30.74 points in 4 days, Yesterday's session continued down the same path: the STOXX Europe 50 Index ended the session around the 4,347.71 level today, after Tuesday's 30.29 points decline and close at 4,378.
The index has been trending positively for about a month. The STOXX Europe 50 Index hit a significant low of 3,279 around 6 months ago, but has since recovered 33.51%.
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. On the other hand, note that the STOXX Europe 50 Index could begin to recover as it approaches significant support, now 24 points away from 4,323.69. Dipping below could be an indication that further losses are ahead.
In the short term, the STOXX Europe 50 Index is expected to maintain its recent downtrend and continue spiralling lower.
Fundamental indicators – France Jobseekers Total improved upon its previous reading of 2.8 million with a new data release of 2.79 million.
In the meantime, negative performances are also seen in other markets, CAC lost 0.86% yesterday and closed at 7,531.61. Dow Jones lost 0.68% yesterday and closed at 33,531. After ending yesterday's session at 7,891, FTSE lost 38.36 points and is trading around 7,852.64.
Upcoming fundamentals: tomorrow at 06:00 UTC data for Germany GDP will be released, with an expected decline to 0.3 from the preceding figure of 0.9.
