CAC 40 Closes Week in Range
- CAC 40 Closes Week in Range
- Daily Resistance Found at 5,375.50
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The CAC 40 is set to close the week little changed, with prices trading just above Monday’s open at 5,343.10. For Friday’s trading, the CAC 40 remains modestly higher up just 0.22%. Key CAC 40 winners for the session include Michelin (+2.03%) and Unibail-Rodamco (+1.83). Top losers include both Veolia Environnement (-1.70%) and LEGRAND (-1.20%).
Technically the CAC 40 remains range bound, failing to make a significant high or low this week. As seen in the graph below, this range has been developing for the last 12 trading sessions. Support is defined by the May 18th low which is found at 5,238.40. Alternatively resistance for the range is found near the May 25th high of 5375.50. With prices currently trading just off of resistance, traders may look for prices to trend back towards support next week. In the event that the CAC 40 breaks out higher in next week’s trading, traders may alternatively begin to target a move back towards the standing 2017 high at 5,498.90.
CAC 40, Daily Chart with Range
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Traders should note that sentiment for the CAC 40 remains relatively flat. Currently, IG Client Sentiment reads at -1.32. With 43.1% of traders long the market, this suggests that the CAC 40 may continue to trade higher. In the event of a bullish breakout next week, traders may look for sentiment figures to move towards a negative extreme of -2.0 or more. Alternatively, if the CAC 40 breaks out below the bottom of its daily range, traders may look for sentiment figures to potential flip positive during next week’s trading.
--- 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.