CAC 40 Pauses Under Resistance at 4,300
- The CAC 40 is Trading Down 0.3% on the Day
- Price Action is Poised to Form an Inside Bar
- SSI Continues to Decline to +1.25
CAC40 30 Minute Chart
(Created using Marketscope 2.0 Charts)
Losing Money Trading? This Might Be Why.
The CAC 40 is trading lower this morning, along with other major European Indices. Fears of a British exit from the EU paired with declining Oil prices this morning have all been credited to the slogging conditions in the global equities market. For the day, the CAC 40 is currently trading down 0.3%. Technical traders should note that the Index has so far failed to have a daily close above resistance at 4,300. This value was mentioned last week, and in the absences of a higher high, it suggests that any upward momentum the CAC 40 previously experienced has at least temporarily stalled.
If price action fails to create a new high or low on the day, the CAC 40 will close the day with an inside bar. This means traders should continue to reference yesterday’s high and low for values of support and resistance. Currently this places overhead resistance at 4,303, and support near 4,219. As prices continue to trade inside these values, CAC 40 traders may begin planning entry orders for the markets next breakout.
SSI (Speculative Sentiment Index) for the CAC 40 (Ticker FRA40) has continued to move back from previously posted extremes. Sentiment is currently reading at a value of +1.25, which a significant adjustment is from last Thursday’s reading of +1.96. Even though today’s reading is slightly positive, this shift towards more neutral values may suggest an impending change in market conditions. In the event of a breakout, traders can then use SSI to potentially validate the markets chosen direction.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.