The CAC 40 Consolidates as Traders Wait for Direction
- The CAC 40 Trades Down -.27%
- Daily Price Consolidates Inside of Support & Resistance
- SSI Reads Neutral at +1.14
CAC 40 Daily Chart
(Created using Marketscope 2.0 Charts)
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The CAC 40 is trading lower this morning, and is currently down -0.27% on the day. Of the 40 traded components on the Index, Sanofi is leading the way trading up 0.79%. Currently ArcelorMittal is leading the decliners, trading down 1.87%. With the CAC 40 little changed on the day, traders may begin to look towards key technical values to determine the markets next direction.
Technical traders should note that if price action closes at present levels, it would mark the second trading day inside of Tuesdays high and low. When using Tuesday’s price action as a reference, the high established at 4,330 can act as a point of resistance. As well, support can be marked at Tuesdays low at a price of 4,236. If prices remain between these values, traders may look for continued consolidation from the Index. Conversely, in the event of a breakout, traders may look to position themselves in the markets chosen direction. In the event of a breakout, traders may take a 1x extension of the reference bar to find initial bullish targets at 4,424 and bearish targets near 4,142.
SSI (speculative sentiment index) for the CAC 40 (Ticker: FRA40) is currently reading +1.14. This value has decreased significantly from +2.67 in our last report. This more neutral reading is indicative of the present consolidating market conditions. In the event of a price breakout, traders may look to sentiment to again move to extremes confirming the markets direction.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.