The Euro Stoxx has been in the same boat as the DAX 30 as the index continued to experience the negativity that left nothing in its wake, devastating the entirety of the European market. Looking at the index, the most recent support that the index has encountered would be the 3,265 which stopped any further downward momentum for the time being.
The index met the support and bounced up, although it encountered some resistance at the 3,320 before slipped just a bit. There is a chance of consolidation for the index with the current movement it is showing after breaking above the 3,285. To put things into more of a perspective, the RSI’s 60-level is a representation of the 3,320 and the 40-level is a representation of the 3,285.
In previous posts, those two levels have been synonymous with consolidation, when the index was to trade between the two levels, it usually showed that there is a lack of direction and that the index is merely drifting sideways until there is a move to catapult in either direction. As the index continues to drift downwards for the meantime, a test of the mentioned support at 3,285 will be tested, a break below would mean more negativity and another test of the 3,265.
Should that come to pass, there will quite the volatile movement towards the low of the index. At the moment, Kering is the main constituent of the index that is affecting is as it dropped as much as 2.7% for the third straight day, as analyst estimates for Gucci’s 3rd quarter performance point to a slowdown at the company’s biggest engine of growth compared with previous quarters.
The Euro Stoxx 50 Spot Index is currently down 5.4% so far this year. It currently trades 11% below its 52-week high of 3,708.82 reached on November 1 and 1.6% above its 52-week low of 3,261.86 reached on March 26. Of the 48 constituents of the index, 32 have risen, and 16 have fallen.
Currently, the best performers on the Euro Stoxx 50 are Deutsche Telekom (+1.98% at €14.19); TOTAL (+1.70% at €55.76); and ING Groep (+1.38% at €11.00). The worst performers are Kering (-4.67% at €402.20); LVMH (-3.27% at €276.35); and Engie (-3.16% at €12.40).