CAC 40 Retraces Early Gains
- CAC 40 Retraces Early Gains
- Sentiment Figures Remain Extreme; IG Client SentimentTotals at -5.12
- Looking for additional trade ideas for equities markets? Read our 2017 Market Forecast
The CAC 40 is now retracing its early morning gains after initially trading to a fresh 2017 high to start today’s session. As the market stands now, the CAC 40 is trading down -0.44% for Monday’s trading. Top Winners for the CAC 40 include Nokia (+0.85%) and Solvay (+0.57%). Top Losers for the Index includes Airbus (-1.59%) and Societe Generale (-1.58%).
Technically the CAC 40 has just put in a new high at 5,152.00 in an ongoing uptrend. As prices back down from this point, the Index remains supported above its 10 day EMA (exponential moving average) found at 5,104.19. If prices remain supported near present levels, traders may look for the CAC 40 to rebound later in the week towards new yearly highs. However if the CAC 40 continues to turn lower, a bearish breakout may next expose the standing April monthly low at 5,054.80.
CAC 40, Daily Chart with 10 Day EMA
As the CAC 40 (Ticker: France 40) continues to print new yearly highs, current market sentiment totals remain at extremes.IG Client Sentimenttotals for the CAC 40 currently stand at a reported -5.12. This is an increase in net short positions from last week’s reportat -3.01. It should be noted that a reading of -5.12 symbolizes that only 16.3% of traders are currently net long the Index. Typically such negative extremes suggest that the Index may continue to trade higher. In the event that the current bullish trend continues, sentiment totals would be expected to remain at their current negative extremes. If the CAC 40 breaks lower in the short term however, traders may see IG Client Sentiment pull 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.