Talking Points:
- CAC 40 Unchanged After ECB Rate Decision
- Key Daily Support is Found Near 4,931.30; Resistance 4,976.30
- Looking for additional trade ideas for equities markets? Read our 2017 Market Forecast
CAC 40 remains relatively unchanged this morning (-0.31%), after the ECB elected to keep key interest rates unchanged at an effective 0.00%. So far winners for the session includes Vivendi (+2.67%) and Unibail-Rodamco (+0.97). Top Losers include Carrefour (-4.75%) and ArcelorMittal (-3.38%).
Technically the CAC 40 is consolidating today, with the creation of an inside bar on the daily chart. Resistance can be found above Wednesdays high at 4,976.30 and support at the low of 4,931.30. Traders may continue to monitor these values and then elect to trade in the markets chosen direction once the Index breaks from its current range.
CAC 40, Daily Chart with Inside Bar
Intraday the CAC 40 is now trading marginally below its central pivot at 4954.16. If downward momentum continues, traders may find next support at the S1 pivot at a price of 4,932.03. It should be noted that a move to this point would not invalidate the previously mentioned inside bar pattern. The next value of intraday support may be found at the S2 pivot at 4,909.16. A move to this point should be seen as significant as the CAC 40 would then be trading to fresh weekly lows.
In the event of bullish rebound in price, the first value of intraday resistance is found at the R1 pivot at 4,977.03. A breakout above this pivot would expose other values of resistance. This includes the R2 and R3 pivot found at 4,999.16 and 5,022.03 for today’s session.
CAC 40, 30 Minute Chart with Pivots
--- Written by Walker, Analyst for DailyFX.com
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