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May 24, 2023- Price action honing in on likely support at 4,350.49
- The STOXX Europe 50 Index's upper Bollinger Band® is at 4,419.42 which indicates a further downward move may follow.
The STOXX Europe 50 Index slid into the red after losing 43.25 points and ending the session at 4,342.38.
The index has been trending positively for about 2 months. The STOXX Europe 50 Index hit a significant low of 3,279 around 7 months ago, but has since recovered 33.75%.
EuroSTOXX's upper Bollinger Band® is at 4,419.42 which indicates a further downward move may follow. On the other hand, note that the STOXX Europe 50 Index could begin to recover as it approaches significant support, now 8.11 points away from 4,350.49. 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 Manufacturing PMI released yesterday at 07:30 UTC with a figure of 42.9, while the previous figure was 44.5.
In the meantime, negative performances are also seen in other markets, CAC slumps 1.33% yesterday and closed at 7,478. S&P 500 is down to 4,145.58, losing 47.05 points, after ending the previous session around 4,192.63. After ending yesterday's session at 19,431, Hang Seng lost 231.25 points and is trading around 19,200.
Upcoming fundamentals: Germany GDP is projected to outperform its last figure with -0.1, having previously been at -0.4. The figure will be published tomorrow at 06:00 UTC.
