CAC 40 Moves on Next Support
- CAC 40 Moves on Next Support Near 4,310.88
- Further Bearish Breakouts Suggest a Return of the Ongoing 2016 Downtrend
- Looking for additional trade ideas for stocks? Read Our Equities Market Forecast
The CAC 40 continues to trade to new weekly lows this morning, as international equities markets decline. So far the Index is trading down -0.89% for the session going into this weeks close. CAC 40 to losers for the day include ArcelorMittal (-2.63%), AXA (-2.40%) and Veolia Environnement trading down (--2.38%) for the session. Only for listed stocks on the CAC 40 are currently trading higher. This includes LafargeHolcim (+2.97%) and LOreal (+2.20%).
With a key technical trendline falling in Wednesdays trading, technical traders are left again looking for key values of support. Below, we can see the next viable line of support for the CAC 40 resting near 4,331.37. This trendline has been comprised by connecting a series of higher lows, beginning with the August 3rd low of 4,293.34.
CAC 40, Daily
(Created Using TradingView Charts)
Traders should continue to monitor this point because a bounce near 4,310.88 may suggest that the CAC 40 is trading in an ascending price channel. In this bullish scenario, traders may look for the CAC 40 to not only bounce but to challenge resistance near 4,600.00.
However in the event that the CAC 40 fails to find support, traders may being looking for a series of bearish breakouts. A bearish decline may include a move below the depicted trendline, coupled with a move through the September 16th low at 4,310.88 and the previously mentioned low at 4,293.34. A move of this nature would have severe bearish implications and suggest a return of the ongoing 2016 downtrend.
--- Written by Walker, Analyst for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.