CAC 40 Trends to New 2017 Highs
- CAC 40 Trends to New 2017 Highs
- Key Daily Support is Found Near 4,834.96
- Intraday Values of Resistance Includes 5,028.63 and 5,082.76
CAC 40 has blasted to new 2017 highs, as global equities markets continue to rally on new optimism. At this point in Thursday’s trading the CAC 40 is up +0.21%. Top winners for the CAC 40 include Engie SA (+7.81%) and LafarageHolcim (+3.04%). Losers for the day include Essilor International (-1.92%) and Pernod LOreal (-1.02%).
Technically, the CAC 40 is now trending higher in both the long and short terms. The Index is currently trading well above its 10 Day EMA (exponential moving average) after yesterday’s advance. This average is found at 4,904.78, and is now acting as a value short term support for the Index. It should be noted after yesterday’s breakout, that the previous line of resistance found at the February 15th high of 4,943.80 may also be considered as a point of ongoing support on the daily graph.
CAC 40, Daily Chart with Averages
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Intraday the CAC 40 is again trading above its central pivot, found at 4,943.46. Typically this is interpreted as bullish in the short term, and traders may begin looking for the Index to challenge points of intraday resistance. This includes today’s R1 and R2 pivots found at 5,028.63 and 5,082.76 respectively. If prices continue reach 5,082.76 this should be seen as significant. The CAC 40 would then be trading at technical levels that haven’t been seen since August of 2015.
In the event of bearish swing intraday, traders should first look for the Index to trade below the previously mentioned central pivot. The next support levels will then include the S1 and S2 pivots for the day. These levels are found at 4,889.33 and 4,804.16 respectively. In a bearish scenario to either of these values, traders should also note that the CAC 40 may then be prepared to close back below both the 10 day EMA and daily line of support previously mentioned.
CAC 40, 30 Minute Chart with Pivots
--- Written by Walker, Analyst for DailyFX.com
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