Talking Points:
- CAC 40 Rebounds From Yearly Lows
- Bearish Daily Breakouts Begin Under 4,798.10
- Looking for additional trade ideas for equities markets? Read our 2017 Market Forecast
CAC 40 is trading modestly higher today (+0.03%), after putting in a new 2017 low at 4,800.40 during yesterday’s session. As a whole European equities markets are quiet in the absence of any substantial European data being released this morning. Top gainers for the CAC 40 currently include LafarageHocim (+3.08%) and Peugeot (+2.3%). Top decliners include Snofi (-0.99%) and Essilor International (-0.97%).
Technically, the CAC 40 can be seen trending downward in the daily graph below. This trend is highlighted by the Index trading under its 10 day EMA (exponential moving average). This average currently resides at 4,425.19 and is acting as a value of short term resistance for the CAC 40. Despite this most recent decline, longer term traders should still note that the CAC 40 remains over its longer term 200 day MVA (Simple Moving Average). This suggest that the Index is currently retracing in a broader daily uptrend.
CAC 40, Daily Chart with Averages
(Created Using TradingView Charts)
Intraday the CAC 40 can be interpreted as consolidating. So far the Index has remained inside of key values of support and resistance. This includes today’s R3 resistance pivot at 4,833.00 and S3 support pivot at 4,809.40. If prices remain between these values, traders may elect to look for range based positioning in an ongoing consolidating market.
If prices decline under the S3 value of support, bearish breakouts may be signaled under the S4 pivot at 4,798.10. A move to this point should be seen as significant as the CAC 40 would be at yearly lows and trading back in the direction of its short term trend. Alternatively, in the event that prices begin to rise, bullish breakouts may be signaled above the R4 pivot at 4,844.80.
CAC 40, Daily Chart with Averages
(Created Using TradingView Charts)
--- Written by Walker, Analyst for DailyFX.com
To Receive Walkers’ analysis directly via email, please SIGN UP HERE
See Walker’s most recent articles at his Bio Page.
Contact and Follow Walker on Twitter @WEnglandFX.
