CAC 40 Pending Daily Breakout
- CAC 40 Closes Friday’s Trading Off Weekly Highs
- Index Traders May Use an Inside Bar to Plan for the Markets Next Breakout
- What’s next for the equities market? Learn more with our Trading Guides and Market Forecasts
The CAC 40 is set to close today’s trading marginally higher (+0.33%), but significantly off of the weekly high of 4,580.30. As the Index ends in a consolidating pattern, many traders are looking towards Monday’s Euro Zone CPI Estimates to shake the Index loose. Expectations for Mondays release are set at 0.5%. Any deviation from this value may cause additional volatility in European markets, including the CAC 40, to begin trading next week.
Technically the CAC 40 is closing the week with the creation of an inside bar. Since today’s price action failed to breakout to a new high or low, traders may use yesterday’s pricing information to pinpoint a breakout in next week’s trading. Currently resistance is found at Thursdays high at a price of 4,557.30. Alternatively, support may be found using Thursdays low of 4,500.80. Traders should continue to monitor these values to determine the markets next chosen direction.
CAC 40, Daily Chart
(Created with TradingView Charts)
In the event of a breakout, traders may use the distance between support and resistance to find preliminary targets. This places preliminary bullish breakout targets for the index at a price of 4,613.80. Alternatively, in the event that prices drop below support at 4,500.80, traders may target a bearish move in the CAC 40 towards 4,444.30. If prices fail to breakout, traders may consider to trade continued consolidation for the Index.
---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.