CAC 40 Talking Points
- The CAC 40 is set to close Thursdays trading with an Inside Bar
- Price action continues to consolidate for the 11th consecutive session
- SSI readings neutralize, with the index reading +1.48
CAC 40 Daily Chart, Inside Bar
(Created using Marketscope 2.0 Charts)
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The CAC 40 has failed to make any significant price changes today, and is set to close the session with an inside bar. This pattern has been created by using yesterday high and low as a reference. This means, Wednesdays high of 4,331 is currently acting as a value of resistance for the Index. Wednesdays low at 4,266 s also acting as support. With prices failing to breakout from these values today, traders will look to see if tomorrows trading breaks the CAC 40 from its current pattern of consolidation.
It should be mentioned that the CAC 40 remains at the bottom of an ongoing daily range. Today marks the 11th trading session without a significant breakout. In the event that prices breakout from the previously mentioned inside bar pattern, traders may look at this momentum to potentially initiate a breakout from this larger consolidation pattern.
CAC 40 Daily Chart
(Created using Marketscope 2.0 Charts
Find out real time sentiment data with the DailyFX’s sentiment page.
Sentiment data for the CAC 40 (Ticker: FRA40) has neutralized from yesterday’s extremes. SSI (speculative sentiment index) is no reading at +1.48. With SSI still reading positive, it suggests the Index may be preparing for further declines. If prices breakout lower, traders may look for SSI to push back to an extreme of +2.0 or higher. Alternatively, in the event that the CAC 40 breaks higher, traders should continue to monitor SSI to see if the Index flips to a negative reading.
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