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The CAC40 Tests Trendline Resistance at 4,650

The CAC40 Tests Trendline Resistance at 4,650

Walker England, Forex Trading Instructor

Talking Points

  • CAC40 trades marginally higher this morning
  • Trendline resistance is found at 4,650
  • A trend resumption exposes lows at 4,805

CAC40 1Hour

The CAC40 Tests Trendline Resistance at 4,650

(Created using TradingView Charts)

Losing Money Trading Forex? This Might Be Why.

The CAC40 Index is trading slightly higher on the day, up .85%. However, prices still remain capped underneath a developing bearish trendline. The trendline depicted above, has been drawn on a Heinkin Ashi chart, by connecting a series of wicks which represent lower highs for the CAC40. Traders looking to sell the Index in its current downtrend may continue to monitor the Heiking Ashi chart for a fresh bearish candle. In the event that a new red filled candle without an uppper wick develops, it would be taken as a strong signal for the resumption of the trend. In this scenario, traders may begin looking for prices to challenge the current monthly low at 4571.

Traders looking for a bullish reversal for the CAC40, will want to see a breakout above the mentioned line of resistance which now resides near 4,650. A move of this nature should be coupled with a series of bullish blue filled candles. Typically, in a bullish reversal, Heikin Ashi candles should have no lower wicks to indicate the strength of the markets new trend. Initial projections for a bullish reversal include a move back towards the previous swing high, which resides at a price of 4,805.

See Walker’s most recent articles at his Bio Page.

Do you know the biggest mistake traders make? More importantly, do you know how to overcome the biggest mistake? Read page 8 of the Traits of Successful Traders Guide to find out [free registration required].

Contact and Follow Walker on Twitter @WEnglandFX

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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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