Technical Analysis: CAC 40 Index : back towards the lower threshold of the channel

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The Cac 40 index is the main equity index of the Paris exchange . It includes 40 companies amongst the most actively traded on the NYSE-Euronext Paris.  ....

Day By Day – Indipendent Research

… Following the crash of the summer of 2011 prices have stabilized above the support at 2694 points and consolidatewithin anascending channel. This configuration should contain the prices for the coming weeks without allowing for a strong recovery.We are therefore neutral in the medium-term.
Anticipation  :
In the shorter-term, the last rebound initiated at the lower threshold of the channel could not pass the resistance zone at 3215 – 3276.40 points, already tested several times.
Prices pulled back towards the support at 2972 points, reinforced by the 62% retracement, but the absence of a franc reaction at the contact with the key threshold allows one to consider its imminent breaking.
We are therefore negative in the short-term and envision a return towards a contact with the 2820 support, reinforcedby the lower threshold of the channel
We set the invalidation threshold for this negative scenario slightly above the 3079 resistance, the first significant obstacle.

Close price 2956.7

2 months Opinion NEUTRAL
2 weeks Opinion NEGATIVE

Resistances 3079,2 / 3215 pts
Supports 2972 / 2820 pts

Follow-up Analysys: The tracker dated 05/12/2011 recommended selling the DAX 30. Since then, prices have finally reached our target at 5782 points, a performance of 5.8%.


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Source: ETFWorld – Day By Day – Indipendent Research



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