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CAC 40 Trends High Towards Next Resistance

CAC 40 Trends High Towards Next Resistance

Walker England, Forex Trading Instructor

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Talking Points:

The CAC 40 is trading modestly higher this morning (+0.31%), as the ECB elected to hold key interest rates flat at an effective 0.00%. Top CAC 40 gainers for Thursday’s trading session include Technip +3.63%, Societe Generale +1.78%, and Sanofi +1.53%. The largest losers include Publicis Groupe -5.45% and ArcelorMittal trading down -1.58% so far on the day.

Technically the CAC 40 remains trading above 4,500. However, with today’s price advance, the Index is now trading above the September 22 swing high at 4,528.90. This recent move toward higher highs has advanced the opinion that the CAC 40 may be entering into a new bullish daily trend. If this trend is to continue, traders will look for the CAC 40 to next test the September 8 swing high of 4,569.60.

CAC 40, Daily Chart

(Created with TradingView Charts)

In the event that price is rejected below 4,569.60, it may suggest that the CAC 40 is trading in another consolidation pattern. With the ascending trendline beginning from the September 16 low of 4,308.00 still intact, it may suggest that the Index is now trading in an ascending triangle pattern. If this scenario prevails, traders may look for the CAC 40 to trade back towards support, which now stands near 4,400.00.

---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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