Talking Points:
- CAC 40 Bounces From Support
- Further Advances Expose 4,600.00
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The CAC 40 has rallied this morning, significantly bouncing from Monday’s lows at 4,347.50. So far the Index is trading up +0.18% for Tuesday’s session. Top CAC 40 winners include Credit Agricole (+5.80%), Societe Generale (+1.11%) and BNP Paribas trading up (+0.86%) for the session. Top losers on the exchange include ArcelorMittal (-4.58%) and Solvay (-2.94%).
Technically, the CAC 40 is still trading in an ascending price channel. With prices bouncing yesterday near support, it may suggest a continued rally for the CAC 40 towards resistance. Currently the ascending line of resistance, depicted below, is found just under 4,600.00. Alternatively, in the event the Index is rejected at present levels, it may reopen the CAC 40 to test previous values of support.
CAC 40, Daily Channel
(Created Using TradingView Charts)
In the short term, traders may look for resistance near 4,481.92. This area is represented in the graph below as a 200 period Moving Average, and a rejection at this point would open the CAC 40 to first retest daily lows at 4,445.80. Other intraday values of support include 4,425.00 and 4,385.00. A move beyond 4,3850.00 should be considered significant as it opens the Index to trade towards new weekly lows under 4,347.50.
It should also be noted that in the event that prices breakout higher, next resistance may be found near 4,502.50. A move beyond this point would solidify this morning’s rally, and open the Index to test the previously mentioned values of daily resistance.
CAC 40, 30 Minute Support & Resistance
(Created Using TradingView Charts
--- Written by Walker, Analyst for DailyFX.com
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