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CAC 40 Rebounds to End Week

CAC 40 Rebounds to End Week

Walker England, Forex Trading Instructor


Talking Points

The CAC 40 is set to close Friday’s trading higher, after the Index has successfully bounced from weekly lows at 4,292.50. Currently the CAC 40 is trading up +1.01% for today’s session. Of the 40 listed components, Lafarage Holcim is leading the advance, trading up +4.40% for the day. Technical traders should note that even with today’s bounce, the Index is still trading under its 200 day SMA (Simple Moving Average). This average now resides at 4,440, and the CAC 40’s daily trend may be considered down until price action breaches this point.

CAC 40, Daily Chart

Short-term technical levels for the CAC 40 include over the R3 Camarilla pivot, at 4,382.37. Prices are currently testing this value, and a break above this point of resistance opens the CAC 40 to test today’s R4 pivot at 4,406.47. If prices decline below the s3 pivot, this places the Index back inside of today’s trading range. In this scenario, traders may look for price action to move back towards values of support. This includes the S3 pivot at 4,304.37 and the S4 pivot at 4,280. A reversal back below the S4 pivot should be considered significant, as this would have the CAC 40 trading at new weekly lows.

CAC 40, 30 Minute Chart with Pivots

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

Traders tracking sentiment should note that SSI for the CAC 40 (Ticker: FRA40) reads at an extreme +3.24. Currently 76% of positioning is long, which creates a bias towards further declines in price. In the event that prices breakout higher, SSI figures should neutralize or flip to a negative reading. Alternatively, in the event of a bearish breakout, it would be expected to see SSI remain at a positive extreme.

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