Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
CAC 40 continues weekly decline

CAC 40 continues weekly decline

Walker England, Forex Trading Instructor

Share:

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

(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

(Created with TradingView Charts)

---Written by Walker England, Market Analyst

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.

DISCLOSURES