CAC 40 Ends Trading Day Little Changed
- CAC 40 Little Changed for Wednesday Trading
- Sentiment Figures Remain Extreme; IG Client SentimentTotals at -3.62
- Looking for additional trade ideas for equities markets? Read our 2017 Market Forecast
The CAC 40 has closed Wednesdays trading relatively unchanged, down -0.01% on the day. Top Winners for today's trading include Essilor (+2.39%) and Nokia (+1.05). Top Losers for the Index include both ArcelorMittal (-4.79%) and Bouygues (-2.40%).
Technically with prices trading lower, the CAC 40 now resides below its 10 day EMA (exponential moving average) found at 5,105.10. It should be noted that today’s close marks the first close below this average this week. Typically this suggest that momentum has turned downward in the short term, which may open the Index up to challenge the weekly low at 5,066.70 in future sessions. If the CAC 40 turns higher however, traders should first look for the Index to break higher above 5,105.10. In this bullish scenario, traders may next target a move towards the standing 2017 high found at 5,152.00.
CAC 40, Daily Chart with 10 Day EMA
Sentiment totals for the CAC 40 (Ticker: France 40) remain at extremes.Currently IG Client Sentiment reads at -3.62 with only 21.7% of traders long the Index. Typically sentiment is read as a contrarian signal, which may suggest that the CAC 40 may continue to trade higher. It should be noted that while sentiment figures remains negative, the ratio has moved away from Monday’s reading of -5.12. If the CAC 40 continues to decline in the short term, it would be expected to see this value continue to move towards more neutral values. Alternatively if the Index bounces to form new yearly highs, it would be expected to see IG Client Sentiment remain negative during upcoming trading sessions.
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--- Written by Walker, Analyst for DailyFX.com
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