TechnoMeter

CAC 40 Daily Chart



Price action for the CAC 40 is now trading higher for the fourth consecutive session. This bullish momentum has continued since the Index broke free from a previously mentioned consolidating trading range. Now as prices advance, traders may begin looking for potential points of resistance. For today’s trading that includes a 78.6% Fibonacci retracement found at 4,536.89. This value has been found by measuring the distance from the previous swing high at 4,616.50 to the current swing low at 4,301.30. In the event that prices break above this retracement value, traders will look for prices to continue upward, and potentially put a new higher high in place.

Alternatively, if the CAC 40 finds resistance here, it would suggest that this week’s bullish momentum is part of a broader retracement in an ongoing downtrend. In this bearish scenario, traders may again look for prices to break back inside of the previously identified range. A further decline below 4,244.50 would suggest a change in momentum for the Index, and open the CAC 40 to resume its 2016 downtrend.

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