CAC 40 Trades to New 2017 Highs
- CAC 40 Trades to New 2017 Highs
- Daily Support is Found at the 10 Day EMA at 4,984.88
- Looking for additional trade ideas for equities markets? Read our 2017 Market Forecast
CAC 40 has opened higher for Thursday’s trading (+0.61%), and has reached a new 2017 high at 5,036.10. European markets as a whole are trading higher for the session, as the conclusion of the Dutch election has bolstered shares. Top Winners for the CAC 40 include ArcelorMittal (+2.52%) and Societe Generale (+2.09%). Top Losers for the CAC 40 currently include Renalut (-3.50%) and Peugeot (-1.06%).
Technically, the CAC 40 continues to trade in an ongoing uptrend. As the Index advances, prices continue to remain supported by the 10 day EMA (exponential moving average) found at 4,984.88. It should be noted that the CAC 40 has not closed under this 10 day EMA since March 1st. In the event that the CAC 40 retraces off of its current highs, traders should first look for the Index to close under this point. This would open up the Index to challenge previous lows near 4,957.60.
CAC 40, Daily Chart with 10 Day EMA
Current market sentiment for the CAC 40 (Ticker: France 40) remains negative, with SSI reading at -1.68. This value suggests that 53% of traders are currently net short the market. It should also be noted here that sentiment totals for the CAC 40 have been net short since February 24th, and the market has rallied over 2.0% from this point. In the event that the Index trends higher, it would be expected to see this value remain net short. However in the event of a bearish reversal, traders should look for sentiment totals to trade back towards more neutral values.
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--- 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.