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OPEC+ Agrees to Stick With Plan to Hike Production, Oil Prices Plunge

CAC 40 continues weekly decline

CAC 40 continues weekly decline

Walker England, Forex Trading Instructor

Talking Points:

  • CAC 40 Turns Lower; Trading Down -1.27%
  • Intraday CAC 40 Support is found near the Current Low of 4,373.80
  • What’s next for the equities market? Learn more with our Trading Guide

The CAC 40 is trading lower this morning (-1.27%), and is set to close down for the third consecutive session this week. European Indices as a whole have been declining today, as stocks have been reacting to yesterday’s release of FOMC meeting minutes from September. With the likelihood of a December rate hike increasing, equities traders should expect this to be the predominant theme for the remainder of 2016 trading. Leading decliners for the CAC 40 include AXA (-3.52%) and Crédit Agricole (-2.95%).

With today’s decline, the CAC 40 still appears to be trading in a consolidating triangle. As displayed in the daily graph below, the Index is now approaching triangle support, which has been created by drawing an ascending trendline between the September 16th low at 4,308.00 and the September 30th low of 4,340.00. If prices begin to bounce near present levels it may suggest that the CAC 40 may rebound towards daily resistance below 4,500.00.

CAC 40, Daily Chart & Triangle

CAC 40 continues weekly decline

(Created with TradingView Charts)

Intraday values of support include the current daily low at 4,373.80. Traders should continue to monitor this value for the remainder of today’s session. If the CAC 40 breaks below this point, it may open the Index up for a broader technical breakout. Short-term values of resistance include the psychological 4,400.00 value, and the previous swing high found at 4,408.10. In the event that the CAC 40 breaks above these values, it would suggest a change in daily momentum for the session. In this scenario, traders may begin looking for a broader move back towards the values of daily resistance previously mentioned.

CAC 40, 30 Minute Chart

CAC 40 continues weekly decline

(Created with TradingView Charts)

---Written by Walker England, Market Analyst

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

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