CAC 40 Continues to Trade Under Yearly Highs at 5,039.00
- CAC 40 Continues to Trade Under Yearly Highs at 5,036.10
- Daily Support is Found at the 10 Day EMA at 5,005.55
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CAC 40 continues to trade just under yearly highs, and is trading up (+0.43%) so far for Tuesday’s session. Top Winners for the CAC 40 include Societe Generale (+2.56%) and BNP Paribas (+2.45%). Top Losers for the CAC 40 currently include Nokia (-1.53%) and Solvay (-0.59%).
Technically the CAC 40 continues to trade in an ongoing uptrend, and is currently trading directly under its 2017 high at 5,039.00. As the Index advances, prices continue to remain supported by the 10 day EMA (exponential moving average) found at 5,005.55. Prices have tested this value earlier in the session, but the Index quickly rebounded to present levels. It should be noted that if the CAC 40 closes the session at present values, it would market the 15th day closing above this average. In the event of a bearish price reversal, traders should first look for the market to breach this value before trading towards other values of daily support.
CAC 40, Daily Chart with 10 Day EMA
Market sentiment for the CAC 40 (Ticker: France 40) remains extreme, with SSI reading at -2.49. This value suggests that 72% of traders are currently net short the market. It should be noted that this is a significant shift from last week’s reading of -1.68. Typically SSi is read as a contrarian indicator, and a continued negative reading suggests that the Index may trade higher. In the event that the CAC 40 breaks to new yearly highs, it would be expected that sentiment totals would remain extreme. Alternatively in the event that the CAC 40 trades lower in the short term, it would be expected to see SSI totals move back towards more neutral readings.
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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.