CAC 40 Closes Slow Trading Week Unchanged
- CAC 40 Consolidates to Conclude Slow Trading Week
- Critical Resistance Remains Near 4,600.00.
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The CAC 40 is set to close a slow trading week in a technical consolidation pattern, by failing to make any new significant highs or lows. For Friday’s trading, the Index is currently trading down -0.42% and is set to close lower for the session. Notable winners for the CAC 40, include Nokia (+3.88%) and L'Oréal(+0.98%). Decliners for Friday include Vivendi (-2.62%) and Engie (-2.00%).
Technically, the CAC 40 can be described as ranging inside of a broader consolidation pattern. Since the Index has turned back under 4,600.00, the lowest low recorded is found at 4,473.40. This point is acting as support for the highlighted range, with resistance being found at Monday’s high of 4,560.90. Traders should continue to monitor these points, as a short term breakout could greatly affect the CAC 40’s larger pricing pattern.
(Created Using TradingView Charts)
As seen above, the CAC 40 continues to trade in a broader ascending price channel. This pattern as mentioned in previous CAC 40 updates, is comprises by connecting a series of parallel daily highs and lows. If this pattern holds, traders may look for the Index to breakout lower under the previously mentioned point of range support. A breakout of this nature would then suggest that the CAC 40 may trade back towards the longer term point of channel support near 4,340.00.
In the event that the CAC 40 breaks through the top of the displayed range, traders may look for the Index to trade back to channel resistance. This point is located near 4,600.00 and represents a critical turning point in price. If prices break above this value, it may suggest an end of this period of consolidation, and the beginning of a newly developing uptrend.
--- Written by Walker, Analyst for DailyFX.com
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