The CAC 40 Stalls After its 4th Daily Advance
- The CAC 40 is Trading - 0.11% lower
- Februarys High at 4,435 Marks Key Resistance
- SSI Reads Neutral at -1.01
CAC 40 Daily Chart
(Created using Marketscope 2.0 Charts)
Losing Money Trading? This Might Be Why.
The CAC 40 is stalling this morning after closing higher for the fourth straight day yesterday. Currently, the Index is trading down -0.11% on the day, and hovering below resistance, which is found at 4,435. This value represents Februarys high, and is also the previous swing high in the CAC 40’s current daily downtrend. A close above this point would signal a significant turn in the Index, which has declined for the previous three months. In a bullish breakout scenario, trader may then begin to target the current 2016 high, which currently stands at 4,653.
In the event that the CAC 40 fails to breakout higher, it opens the Index to again challenge new yearly lows. In this scenario, it would be expected to see the CAC 40 decline along with other European indices including the DAX 30 and FTSE 100. Initial bearish targets for the CAC 40 include previous support at 4,250 and the standing 2016 low at 3,890.
SSI (Speculative Sentiment Index) for the CAC 40 (Ticker FRA40) is currently reading at -1.01. With open interest nearly neutral, it suggests that there may be a period of consolidation for the Index. In the event that the market does breakout, traders may continue to monitor SSI to validate any directional-based moves with shifts in sentiment.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.