CAC 40 Trades Lower After Critical Breakout
- CAC 40 Price Action Moves Lower as Brexit Fears Rattle Equities Markets
- CAC 40 Finds Support Near 4,100.00
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The CAC 40 is trading lower this morning, and is currently down -.77% on the day. European Indices as a whole are trading lower, with the lower bank shares and Brexit fears weighing on markets. Of the 40 listed CAC components, 37 are trading lower. So far, Technip has led the decline and is trading down -2.87% for the day.
CAC 40 Daily Chart
(Created using Marketscope 2.0 Charts)
Technically, the CAC 40 has continued to decline after breaking out of a symmetrical triangle, which was identified last week. In the event that prices close lower today, it will mark the sixth decline in the index over the last 7 sessions. The next values of support for the Index includes the February 2 swing low at 4,115.80 and the psychological 4,100.00 level. In the event that prices break below 4,100.00, it opens up the CAC 40 to test new yearly lows below 3,890.50. Alternatively, if price action finds support, the Index may bounce back to the point of its initial breakout. The ascending line that previously comprised triangle support is now acting as resistance, and can be found near 4,295.71.
Find out real time sentiment data with the DailyFX’s sentiment page.
Sentiment for the CAC 40 (Ticker: FRA40) remains extremely positive with SSI (speculative sentiment index) reading at +2.70. This value has increased from last week’s reading of +2.20. Now with 73% of positioning long, SSI suggests that the CAC 40 may be poised for a further decline. In the event that the Index finds support, traders should look for SSI to neutralize as prices advance.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.