CAC 40 Declines on Election Jitters
- CAC 40 Declines on Election Jitters
- Sentiment Figures Remain Negative; IG Client Sentiment at -1.89
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The CAC 40 is trading significantly lower today (-1.18%), as European markets begin to have concerns amid election uncertainty in France. Traders should note that the first round of the French presidential election will be held on April 23rd. If no candidate receives a majority, a runoff is then slated for May 7th. As these dates approach, traders may continue to look for market volatility to increase. At this point, only one listed stock on the CAC 40 is trading higher. SAFRAN is currently trading up +0.27%. Top Losers for the Index include both ArcelorMittal (-5.97%) and Carrefour (-3.68%).
Technically with today’s decline, the CAC 40 is again trading back below its 10 day EMA (exponential moving average) at 5,076.75. This move suggests that the Index is again trading in a short term downtrend, despite Monday’s rebound in price. Currently, today’s intraday low is found at 4,992.80. The Index however has bounced from this point, to again find support above the psychological 5,000.00 level. In the upcoming day’s preceding the election, traders should continue to monitor the 5,000.00 level. A bounce above this point may suggest a short term rebound for the Index, while a bearish breakout next exposes the March 22nd swing low at 4,952.70.
CAC 40, Daily Chart with 10 Day EMA
Sentiment totals for the CAC 40 (Ticker: France 40) remain near negative extremes this Tuesday.Currently IG Client Sentiment reads at -1.89 with 34.7% of traders long the Index. While this sentiment total is negative, traders should note that today’s total has significantly shifted from last week’s reading of -3.62. If the CAC 40 continues to decline further this week, traders may look for these sentiment totals to eventually flip to a positive reading. Alternatively, if the CAC 40 finds support in the upcoming sessions, sentiment totals may remain negative and shift back to extremes of -2.0 or more.
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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.