CAC 40 Trades Higher on Open
CAC 40 30 Minute Chart
(Created using Marketscope 2.0 Charts)
Losing Money Trading? This Might Be Why.
The CAC 40 is trading up 2.7% this morning, with shares of Solvay leading the way trading up 7.4% on the day. As equities advance, the Index is currently hovering above today’s R3 pivot point at 4,275. With prices trading above this value, the next value of bullish resistance resides at 4,292. This point is represented on the graph above as the R4 pivot, and a move above this value would allow the CAC 40 again attempt a breakout above 4,300.
In the event that the CAC 40 declines back under the R3 pivot, it opens the Index to decline for the third straight trading day. In this scenario, traders will begin looking for prices to challenge values of support. Today’s support levels include the S3 pivot point found at 4,187 and the S4 pivot at 4,151. It should be mentioned that a decline in value below 4,151 would allow the Index to challenge the standing weekly low at 4,115.
SSI (Speculative Sentiment Index) for the CAC 40 (Ticker FRA40) is currently reading at an extreme of +2.75. As traders increase their long exposure, this contrarian Index suggests that there may be further declines in store for the CAC 40. In the event that prices do break higher, it would be expected that SSI would then decline to read a more neutral value.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.