CAC 40 Bounces From Weekly Lows
- CAC 40 Rebounds From Weekly Lows
- Sentiment Figures Remain Extreme; IG Client Sentiment Totals at -3.01
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The CAC 40 is rebounding from weekly lows this morning, after finding support above 5,050.00. For the today’s session the CAC 40 is trading up 0.29%, with the remainder of European markets remaining mixed. Top Winners for the CAC 40 include LVMH (+1.15%) and Unibail-Rodamco (+1.07%). Top Losers for the Index currently include Peugeot (-0.97%) and Renault (-0.75%).
Technically the CAC 40 is again trending higher in the short term, trading back above its 10 day EMA (exponential moving average) after declining to new weekly lows. This rebound in price should be seen as significant as it places the Index in a position to challenge the standing 2017 high at 5,116.10. In the event that the CAC 40 fails to breakout higher, traders may first look for the Index to challenge the 10 day EMA at 5,084.28. In this bearish scenario, the CAC 40 should breakout to new lows under today’s low of 5,050.50.
CAC 40, Daily Chart with 10 Day EMA
As the CAC 40 (Ticker: France 40) trades off of yearly highs, current market sentiment remains extreme.CurrentlyIG Client Sentimenttotals are reading at -3.01. This reading indicates that only 24.9% of traders are currently net long the Index. While this number has shifted slightly from earlier readings in the week, typically such negative extremes suggest that the Index may continue to trade higher. In the event of a fresh bullish breakout to new yearly highs, sentiment would be expected to remain negative going into the upcoming trading week. Alternatively in the event of a bearish breakdown in price, traders may look for sentiment values to move back towards more neutral values before flipping to a positive reading.
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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.