CAC 40 Remains Flat Ahead of Election
- CAC 40 Remains Flat Ahead of French Election
- Daily Resistance May be Considered at 5,362.30
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The CAC 40 has remained quiet after the conclusion of round 1 of the 2017 French presidential election. The Index is now consolidating for its second consecutive week as traders await the final election round to be held on May 7th. Currently the CAC 40 Index is trading up 0.38% for Tuesday’s trading, with the Index remaining well under its 2017 high at 5,362.30. Top leaders for the session include Cap Gemini (2.09%) and Nokia (+1.70%). Top Losers for today’s trading include both Vivendi(-1.40%) and Publicis (-1.27%).
CAC 40, Daily Chart with 10 Day EMA
Technically, even with this week’s ongoing consolidation, the CAC 40 remains in a technical uptrend. The Index remains trading above both its 10 day EMA (exponential moving average) at 5,233.83 and 200 day MVA (simple moving average) at 4,768.44. Key technical areas to monitor for the Index includes both the high at 5,362.30 and low at 5,158.50 from April 24th. These points represent the market extremes following the first round of the 2017 presidential election, and should be considered as ongoing values of support and resistance.
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Traders should note that IG Client Sentiment (IGCS) for the CAC 40 (Ticker: France 40) remains at extremes. Currently IGCS stands at -2.93 with only 25.5% of traders net long the Index. This reading is considered extreme, and when taken as a contrarian signal this extreme negative value suggests that the CAC 40 may continue to trader higher. If the CAC 40 trades to new highs, it is likely that sentiment figures will remain at extremes. Alternatively in the event of a bearish reversal, traders may look for sentiment values to normalize back towards neutral values.
--- 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.