Stock market: Alexandros Yfantis talks IBEX, CAC40 and EUROSTOXX50
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Major European indices are turning around from a multiweek bullish run to an ugly reversal. Pull backs or trend reversals to the downside are usually more aggressive and we are now witnessing such a bearish change in the major indices. Yesterday we talked extensively about DAX (German index), while today we start by taking a closer look at the EUROSTOXX50 with the help of the Ichimoku cloud indicator.
In Ichimoku cloud terms trend is now neutral as price has enter the Kumo (cloud). Price is below the negatively sloped tenkan-sen (red line indicator) and the kijun-sen (yellow line indicator). The Chikou span (black line indicator) is also now below the candlestick pattern. All the above characteristics are of a bearish trend. If these characteristics are combined with a break below the Kumo, then we will get a sell signal.
IBEX
The Spanish IBEX is no different. Price is now in Neutral trend. Price is vulnerable to more downside towards the lower cloud boundary around 4,011. Recapturing the 4,170 level is important for bulls. They need to push price above this level in order to regain control.
CAC40
The French CAC40 is of course no different. Same characteristics here as well showing that CAC40 remains vulnerable to more downside. Short-term trend is bearish and with potential to see a move towards the lower cloud boundary at 4,011 is highly probable. Will central banks change their rate policy? Will European banks come under pressure following the recent fall out of SVB and crisis looming above Credit Suisse?
Read next: Euro against US dollar - technical analysis - March 16th, 2023| FXMAG.COM
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