CAC 40 Closes the Week at New Lows
- CAC 40 Declines to Weekly Lows
- CAC 40 Daily Support is Found at 4,442.74
- If you are looking for more trading ideas for equities markets, check out our Trading Guides
The CAC 40 has broken down to weekly lows this Friday, trading down -1.12%. Of the 40 listed CAC components, AXA had the largest Friday advance of +1.07%. Alternatively, ArcelorMittal has had the markets largest decline of -3.09%. Today’s decline should be seen as significant as it places the CAC 40 back below Augusts high of 4,528.30.
Traders looking for further declines in next week’s trading should first look for the CAC 40 to approach support near 4,442.74. This area is represented graphically by an ascending trendline, which has been assembled by connecting a series of August swing lows. If prices dip below this point, traders should next look for the Index to challenge the key 4,400.00 value. In the event that prices bounce for support, it would suggest that Friday’s decline was simply a retracement in an ongoing uptrend. In this scenario, traders may look for the CAC 40 to advance back towards monthly highs of 4,569.50.
CAC 40, Daily Chart:
Traders tracking sentiment should note that current ratio of long to short positions for the CAC 40 (Ticker: FRA40) stands at -1.80. This value has moved off of the previously reported extremes of -3.00. Typically when SSI is reading at a negative extreme, it suggests that the market may be prepared to trade higher. However, if the CAC 40 continues to decline, it would be expected to see SSI flip to a positive reading in the future.
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.