Talking Points:
- CAC 40 Trades Under 2017 Highs
- Intraday Resistance Found at 5,002.66
- Looking for additional trade ideas for equities markets? Read our 2017 Market Forecast
CAC 40 has opened the week slightly higher (+0.12%), as European markets await ECB President Mario Draghi to speak in Frankfurt later today. Top Winners for the session include ArcelorMittal (+2.84%) and Bouygues (+1.54%). Top Losers for the CAC 40 currently include Accor (-0.70%) and Cap Gemini (-0.56%).
Technically the CAC 40 is trading just off of the standing 2017 yearly high at 5,022.00. As the Index advances, traders should note that the CAC 40 remains above its 10 day EMA (exponential moving average). This line is found today at 4,971.11, and will continue to act as a point of support if the CAC 40 continues to trend higher. In the event of a breakout below this point, traders will look for support at the March 8th swing low near 4,931.3.
CAC 40, Daily Chart with Inside Bar
Intraday the CAC 40 is trading above today’s central pivot at 4,987.96. While this is seen as bullish, the Index is now finding resistance under today’s R2 pivot found at 5,002.66. If prices continue to advance and breakout above this point, the last value of intraday resistance may be found at the R3 pivot near 5,007.83.
In the event of bearish reversal, the CAC 40 will first need to pass through the R1 pivot at 4,993.13. This former point of resistance is now working as a point of support. A breakout under 4,993.13 will expose other values of intraday support including the S1 and S2 pivots found at 4,978.43 and 4,973.26.
CAC 40, 30 Minute Chart with Pivots
--- Written by Walker, Analyst for DailyFX.com
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