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CAC 40 Trading Remains Confined by Range

CAC 40 Trading Remains Confined by Range

2016-03-31 13:00:00
Walker England, Forex Trading Instructor
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Talking Points

  • The CAC 40 Trades Down -.89%
  • Today’s Daily Candle Marks 13 Days of Consolidation
  • SSI Reads Bearish at +1.73

CAC 40 Daily Chart

CAC 40 Trading Remains Confined by Range

(Created using Marketscope 2.0 Charts)

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The CAC 40 is trading lower this morning, down -0.89% on the day. With only moderate movement in the index, the CAC 40 appears to be consolidating for the 13th consecutive day. Out of all 40 listed stocks only four components are trading positive today. ArcelorMittal is leading the Index trading up 2.16%. Bouygues is leading the decliners trading down -3.44%. Technical traders monitoring the CAC 40 should continue to note that the Index continues to consolidate in a trading range. This range is comprised using the March 10 high (4,582.50) and low (4,302.00). As prices trade sideways, traders may elect to trade the range, or simply wait for a directional breakout prior to entering into the market.

Key day trading values for the CAC 40 includes today’s S4 Camarilla point, which is found at a price of 4,389.41. So far, price has attempted to break below this value price. In the event that price decline below this point, it opens the Index up to trade lower towards the previously mentioned range low at 4,302. It should also be mentioned that the S3 pivot, found at 4,412.46, is acting as a value of intraday range support. If the CAC 40 trades back inside this value, it opens the Index to test values of daily resistance. This includes the R3 pivot at 4,458.55 and the R4 pivot at 4,481.59.

CAC 40 30 Minute Chart with Camarilla Pivots

CAC 40 Trading Remains Confined by Range

(Created using Marketscope 2.0 Charts)

SSI (speculative sentiment index) for the CAC 40 (Ticker: FRA40) is currently reading at +1.73. This value remains positive, and when taken as a contrarian reading suggests further declines for the Index. In the event of a bearish breakout, traders should look for this number to increase in value to further extremes. Conversely, in the event of a bullish reversal, traders should look for SSI to move towards more neutral values.

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