European indices end the day and the week down sharply
The large European stock clues
clues
Stock indices represent an index that measures a particular stock market or a segment of the stock market. These instruments are important for investors because they help compare current price levels with past prices to calculate market performance. The two main parameters of indices are that they are both investable and transparent. For example, investors can invest in a stock index by buying an index fund, which is structured like a mutual fund or an exchange-traded fund, and track
Stock indices represent an index that measures a particular stock market or a segment of the stock market. These instruments are important for investors because they help compare current price levels with past prices to calculate market performance. The two main parameters of indices are that they are both investable and transparent. For example, investors can invest in a stock index by buying an index fund, which is structured like a mutual fund or an exchange-traded fund, and track
Read this term end the day with strong declines. For the trading week, indices are also lower as concerns over financial conditions in Switzerland hurt sentiment. Worries about global growth are also weighing in, as is the ECB’s 50 basis point hike this week. Finally, European indices have been relatively stronger in 2023. The German DAX, the French CAC and the Spanish Ibex are all up over the year. The UK FTSE 100 is negative, however.
A look at the nearby levels shows:
- The German DAX fell -198.9 points or -1.33%
- The French CAC felt -100.30 points or -1.43%
- Britain’s FTSE 100 fell -74.63 points or -1.01%
- The Spanish ibex fell -178.42.4 or -2.01%
For the trading week:
- The German DAX fell -4.28%
- The French CAC fell by -4.09%
- Britain’s FTSE 100 fell -5.33%
- Spanish ibex -6.09%
Technically speaking, the German DAX and the UK FTSE 100 are both testing key weekly moving average levels.
Looking at the German DAX weekly chart above, it is down -4.28% this week with a low of 14664.67. Looking at the weekly chart that tested week 100 moving average
Moving average
A moving average is a statistical tool used to smooth short-term fluctuations in data and reveal longer-term trends. It is calculated by taking the average of a number of data points over a specific period of time and then plotting that average as a line on a graph. The most common types of moving averages are simple moving averages (SMA) and exponential moving averages (EMA). In financial markets, moving averages are often used to analyze stock prices, exchange rates, etc.
A moving average is a statistical tool used to smooth short-term fluctuations in data and reveal longer-term trends. It is calculated by taking the average of a number of data points over a specific period of time and then plotting that average as a line on a graph. The most common types of moving averages are simple moving averages (SMA) and exponential moving averages (EMA). In financial markets, moving averages are often used to analyze stock prices, exchange rates, etc.
Read this term at 14650.53 (blue line in the chart above).
Drilling down on the daily chart below, yesterday’s low price – and again today – tested the 100 DAY rising moving average currently at 14681.47.
Needless to say, these two longer-term moving average levels (100-week MA at 14650 and 100-day MA at 14681) will be key to the new trading week next week. Traders will have to decide if there are more downside polls, or do we see a rebound from key technical support?
Know…
The German DAX tested its 100-day moving average at 14681.41
For Britain’s FTSE 100, it also tested its 100-week moving average at 7320.42. The low of the week reached 7309 points but bounced off this low and closed just above the level of the moving average (the close at 7335.41).
Like the German DAX, next week will be a key barometer for buyers and sellers. Moving below would be more bearish and cause traders to probe lower. Conversely, stay above and traders will start looking to the 2022 closing level at 7451.74 as an upside target.
Britain’s FTSE 100 closes just off its 100-week moving average
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