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June 06, 2023- Next support is currently 17.38 points away at 4,276
- The STOXX Europe 50 Index's upper Bollinger Band® is at 4,379.63 which indicates a further downward move may follow.
Though in the midst of a 3 day uptrend, gaining a total of 0.837%, (65.91 points), Yesterday's session suggests run might be coming to an end — slightly down but mostly flat: the STOXX Europe 50 Index ranged between 4,287 and 4,333.18 before closing at 4,293.24.
The index has been trending positively for about 2 months. The STOXX Europe 50 Index is now trading 31.85% above the significant low (3,279) it slumped to 8 months ago.
EuroSTOXX made an initial break below its 50 day Simple Moving Average at 4,305, a possible indication of a forthcoming negative trend. A Bearish Harami chart pattern, which is a means of predicting reversals in bull markets. When a Bearish Harami is detected at the top of a prevailing uptrend, it is typically considered a bearish signal and a prelude to a potential trend reversal. The STOXX Europe 50 Index's upper Bollinger Band® is at 4,379.63 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 17.38 points away from 4,276. 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 – Euro Zone Composite PMI released yesterday at 08:00 UTC with a figure of 52.8, while the previous figure was 54.1.
In the meantime, negative performances are also seen in other markets, after ending yesterday's session at 7,270.69, CAC lost 69.69 points and is trading around 7,201. Dow Jones lost 0.59% yesterday and closed at 33,763.
Positive performances can be seen by looking at other markets as Hang Seng added 1.1% and closed around 19,100 yesterday.
Upcoming fundamentals: Euro Zone Retail Sales is projected to outperform its last figure with 0.2%. It previously stood at -1.2%; data will be released today at 09:00 UTC.
