Talking Points:
- CAC 40 Rallies For Third Session
- Next Resistance is Found Near 4,900.00
- Looking for additional trade ideas for equities markets? Read our 2017 Market Forecast
CAC 40 continues to move higher for Thursdays trading (+0.03%), after bouncing from yearly lows earlier in the week. If today’s session closes higher, it would mark the third consecutive daily rally for the Index after finding support above 4,800.00 on Monday. Top winners for the CAC 40 include Nokia (+3.28%) and Pernod Ricard (+2.34%). Today’s top losses for the CAC 40 include Saint-Gobain (-1.34%) and Airbus (-1.16%).
Technically the CAC 40 is rebounding off of support found at the weekly low, but the Index has yet to breakout to new significant 2017 highs. Before the Index can continue to rally, the CAC 40 must next break through the psychological 4,900.00 level. This level was tested earlier this morning, but prices were quickly rejected here. If the CAC 40 fails to breakout higher, it may suggest a change in market momentum and open prices to retest the 2017 low.
CAC 40, Daily Chart
(Created Using IG Charts)
Intraday the CAC 40 is turning lower after testing initial resistance found at the displayed R1 pivot, at a price of 4,897.50. If prices continue to turn lower, a break below the central pivot at 4,869.16 would suggest that short term momentum has turned bearish for the session. In this scenario, traders may look for the Index to test values of support. This includes the S1 and S2 pivot, found at 4849.03 and 4,820.66 respectively.
In the event of a bullish breakout, traders will find the next points of resistance at the R2 and R3 daily pivot values. A move above the R2 pivot at 4917.66 should be seen as significant. This would place the CAC 40 above the previously mentioned psychological 4,900.00 level, and open the Index to make a push to new yearly highs above 4,929.80.
CAC 40, 30 Minute Chart with Pivots
(Created Using IG 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.
