CAC 40 Retreats From 2017 Highs
- CAC 40 Retraces From 2017 Highs
- Key Daily Support is Found Near 4,943.80
- Looking for additional trade ideas for equities markets? Read our 2017 Market Forecast
CAC 40 has backed away from standing yearly highs, as European shares have sold off ahead of this Thursday’s ECB rate decision. Expectations are for rates to be held at 0.00%, but any change in monetary policy may cause markets to shift dramatically. For today’s trading the CAC 40 is currently down -0.32%. Top winners for the CAC 40 include Peugeot (+1.07%) and Renault (+0.80%). Losers for the day include Total (-1.10%) and Pernod Ricard (-0.78%).
Technically the CAC 40 short term trend remains up, despite this week’s pullback. The Index so far remains over 4,943.80 which was previous daily resistance, and is now an acting point of support. Also, the CAC 40 is trading above its 10 Day EMA (exponential moving average), found at 4,942.70. In the event of a bearish reversal later in the week, traders should look for the Index to breach both of these points. Alternatively if price remain supported, traders may look for the CAC 40 to make another attempt at new 2017 highs over 5,011.70.
CAC 40, Daily Chart with Averages
Intraday the CAC 40 is trading well below its daily central pivot found at 4,979.30. Downward momentum has continued, with the Index now trading below first support found at 4,963.30. If prices dip further, traders may look for the next values of support to include today’s S2 and S3 pivots at 4,944.50 and 4,928.50.
In the event of bullish rebound in price, the CAC 40 will first need to trade back above the previously mentioned central pivot. At which point, intraday values of resistance include the R1 and R2 pivots found at 4,998.10 and 5,014.10. It should be noted that if prices reach the R2 pivot at 5,014.10 the CAC 40 would be trading to a new 2017 high. This scenario should be seen as extremely bullish, and exposes the last point of intraday resistance found at 5,032.90.
CAC 40, 30 Minute Chart with Pivots
--- 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.