French Stocks Rebound to Daily Resistance
- CAC40 finds resistance under 4,961
- Price above 4,919 provides retracement opportunities
- A breakout below 4,900 would signal a shift in the trend
CAC40 30 minute
(Created using TradingView Charts)
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European Stocks and the CAC40 (FRA40) Index have remained resilient this week, after initial fears caused the benchmark to decline from Friday’s attack on Paris. With prices rebounding this week, longer term trend traders will continue to monitor the psychological 5,000 point mark for a resumption of the CAC40’s uptrend. Conversely, day traders have targeted intraday resistance at today’s R3 Camarilla pivot point at a price of 4,961. Currently prices are retracing off of these values towards key values of support and suggests that a retracement may be in play for the Index.
Range support for today can be found at S3 pivot point at a price of 4,919. If prices remain above this value, it can provide day traders an opportunity to join this week’s short-term uptrend. Traders looking for bullish momentum should also monitor the R4 pivot point at 4,981. A move to this point would be significant as it would be the second bullish breakout so far this week, and prices would again be attempting to challenge the current monthly high at 5,011. Traders extrapolating a 1-x extension of today’s 42-point range, over the R4 pivot, can set initial bullish targets near a price of 5,024.
Alternatively, if French stocks begin to selloff, and the CAC40 drops below the previously mentioned point of support, it may lead to future declines for the Index. Final pivot support is found today at the S4 pivot point at a price of 4,900. A drop below this point would represent a conclusion of the previously sited bullish momentum. At this point, day traders may choose to trade a decline towards lower lows. Using a 1-x extension of today’s range, breakout traders may begin to target a price of 4,858 on a breakout toward lower lows.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.