CAC 40 Bounces at Range Support
- CAC 40 Bounces at Support Near 4,375
- Tomorrows Jackson Hole Event May Breakout Markets
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The CAC 40 is poised to close Thursdays trading lower, with the Index currently down -0.65% for the session. Of the 40 listed components, Valeo had led today’s decline, closing down 2.12% for the day. With little Euro Zone based news on the economic calendar, it has been a relatively quiet week of trading for the CAC 40. However, traders should watch for the markets response to tomorrows Jackson Hole Policy Symposium. While the Fed is expected to directly impact US markets, depending on the tone of the event it may have repercussions for world markets as well.
CAC 40, Daily Chart
Price action for the CAC40 remains range bound in the short term. Today’s low at 4,376 tested range resistance which resides close to 4,375. If prices remain supported here, traders may look for price action to move back towards range resistance at 4,450. It should be noted here that the Index has now traded inside of this range for the last five trading sessions. In the event that price action breaks from either support or resistance, traders may extrapolate a 1X extension of the markets 75 point range to find preliminary targets at either 4,525 or 4,300.
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 -3.41. Currently 77% of positioning is short, which creates a bias towards further advances in price for the Index. In the event that prices breakout higher, SSI figures would be expected to remain at negative extremes. Alternatively, in the event of a bullish breakout, it would be expected to see SSI to move back towards values that are more neutral.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.