CAC 40 Prices Stall at Daily Resistance
- The CAC 40 Consolidates for the 6th Consecutive Session
- Range Resistance is Found Near 4,350 on the Daily Chart
- Sentiment Readings Remain Extreme at +2.33
CAC 40 Daily Chart
(Created using Marketscope 2.0 Charts)
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CAC 40 prices are trading higher today, and the Index is currently up +1.00% on the session. Leading the advance is Vivendi, which is trading up 3.28% so far on the day. In the absence of a major economic release today, traders will be looking forward to tomorrows GDP (Gross Domestic Product) data to provide potential market direction. Expectations for Euro Zone GDP have been set at 1.6%. Any major deviation from this value may prove to be the catalyst knocking the CAC 40 from its consolidating range.
Today’s price action has the CAC 40 now testing a daily value of resistance near 4,350. For the last six trading sessions, this point has acted as resistance for a developing trading range. In the absence of a significant breakout, traders may look for prices to decline back towards range support. Range support can be seen in the graph above, 50 points below resistance at 4,300. If prices fail to breakout with tomorrow’s news, traders may continue to elect to trade this consolidating range. Traders waiting for a breakout, may elect to find initial targets by extrapolating 1X the Index’s current 50 point range. This places bullish targets near 4,400, and bearish targets near 4,250.
Find out real time sentiment data with the DailyFX’s sentiment page.
Sentiment data for the CAC 40 (Ticker: FRA40) remains little changed from last week’s reading. SSI (speculative sentiment index) for the CAC 40 currently reads at an extreme at +2.33. When taken as a contrarian signal, this reading may suggest further declines for the Index. In the event that prices break higher, traders should look for SSI to decline back towards more neutral values.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.