Skip to Content
News & Analysis at your fingertips.
Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
The CAC 40 Breaks Higher Ending Consolidation

The CAC 40 Breaks Higher Ending Consolidation

Walker England, Forex Trading Instructor


Talking Points

  • CAC 40 Breaks Above 4,400 Ending its Consolidation
  • Current Resistance is Found at the 200 Day SMA at 4,458.00
  • If you are looking for more trading ideas for equities markets, check out our Trading Guides

The CAC 40 is breaking higher today, after trading through key resistance at 4,400. So far, the Index is trading up 1.65% for the session, and is now challenging its 200-day SMA (Simple Moving Average) at 4,458.00. If price action continues to trade above this value, it may suggest a significant change in the CAC 40’s trend. It is worth noting here that the CAC 40 is still trading down -3.7% year to date.

CAC 40, Daily Chart

(Created using Marketscope 2.0 Charts)

Short-term technicals for the CAC 40 are looking increasingly bullish as price continues to trade over the R4 Camarilla pivot, at 4,433.00. Initial bullish targets for today’s breakout were placed at 4432.6, which represents a 1 X extension of today 29.6-point ranges. Since price is already trading above this value, traders may begin looking for a 2x extension towards 4,492.20.

Traders looking for a reversal today should first look for the CAC 40 to be rejected at the 200 day SMA mentioned above at 4,458.00. If price declines below this value, it opens the Index to trade back under the R4 pivot and back towards values of support. Values of support include the S3 pivot support at 4,388.22 and S4 pivot at 4,373.60. A move below S4 should be considered significant, as it would completely invalidate this morning’s breakout. In this scenario, traders may realign their expectations as the CAC 40 trades back in the direction of the primary trend.

CAC 40, 30 Minute Chart

(Created using Marketscope 2.0 Charts)

Find out real time sentiment data with the DailyFX’s sentiment page.

To Receive Walkers’ analysis directly via email, please SIGN UP HERE

See Walker’s most recent articles at his Bio Page.

Contact and Follow Walker on Twitter @WEnglandFX.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.