CAC 40 On The Verge Of A Breakout
- CAC 40 On The Verge Of A Breakout
- Daily Resistance Remains at 4,606.70
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The CAC 40 is attempting to breakout from its ongoing range today, and is currently trading up 0.38% for the session. This advance has come as European Indices remain mixed ahead of Thursdays ECB Interest rate decision. Top CAC 40 winners include Société Générale (+4.49%) and Engie (+3.03%). At this time CAC 40 losers include, Sanofi (-1.50%) and ArcelorMittal (-1.24%)
Technically, the CAC 40 has yet to breakout from the range displayed in the daily chart below. Resistance is still defined by the November 10th high of 4,606.70, and support by the November 11th low of 4,473.40. While the Index is poised to close higher for the third session, it is still possible for the CAC 40 to turn sharply against resistance. In this scenario, the CAC 40 will close in range for the 17th consecutive session and potentially begin making a fresh descent back towards support.
CAC 40, Daily Consolidation Pattern
(Created Using TradingView Charts)
In the event that the CAC 40 breaks to a new high, this may suggest that a new bull trend is emerging for the Index. Traders may extrapolate a 1x extension of the highlighted 133.3 point range to place preliminary bullish breakout targets near 4,740.00. If prices fail to trade higher after an initial breakout, traders may look for the CAC 40 to return inside of previous resistance at 4,606.70.
--- 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.