- The MACD is significantly below its signal line which suggests that the existing bearish sentiment is beginning to swing around toward a more bullish outlook.
- Falling prices have precipitated CAC 40's approach to its lower Bollinger Band® at 7,087.57
Having fallen 61.3 points in 3 days, Yesterday's session continued the recent downtrend: CAC 40 ended yesterday at 7,189.57 following from closing Tuesday at 7,234.25. Overall, this represents a loss of 44.68 points or 0.62%.
The index has been trending positively for about 2 months. CAC hit a significant low of 15.42 around 5 months ago, but has since recovered 46,800%.
The MACD is significantly below its signal line, which suggests the market is running out of bearish momentum and could revert to a positive outlook as bulls regain control. CAC 40's lower Bollinger Band® is at 7,087.57, indicating that the asset has overextended to the downside and could, therefore, bounce back as buyers look for bargains.
Technical analysis shows that CAC (currently on a downtrend) might reverse course and start going up in the short term.
Fundamental indicators – Germany Consumer Price Index released yesterday at 13:00 UTC with a figure of 8.7%, while the previous figure was 8.7%.
In the meantime, negative performances are also seen in other markets, Hang Seng is down to 20,429, losing 190.25 points, after ending the previous session around 20,620. DAX slides down 0.72% yesterday and closed at 15,300.
Other assets are showing positive performances as KOSPI Composite Index increases 0.62% yesterday and closed at 2,413.
Upcoming fundamentals: Euro Zone Consumer Price Index figure is projected at 8.2%. It previously stood at 8.6%; data will be released today at 10:00 UTC.