Technical Analysis: CAC40 index: new bearish acceleration

francia 3

Technical Commentary: The CAC40 index is the main index of the Paris Stock Exchange. It is composed by the 40 most traded equities on the NYSE-Euronext Paris market. For more than eight months now, the index has been ....

Day By Day – Indipendent Research

…Technical Commentary: consolidating in a slightly rising channel. This recovery initiated after the summer 2011 krach is now giving signs of weakness while prices barely bounce on the lowest threshold of the channel. Sellers seem to regain control of the market and the probability of a breach of the pattern is getting stronger. We are bearish over the midterm.

Anticipation  :
On the short term side, despite the bear trap below the 3175.70 points support, the CAC40 index did not confirm the previous bullish dynamics and did not even bounce properly. The 3285 points resistance, merged with the 100-day moving average, has contained all bullish attempts; it is now triggering a bearish acceleration. The 3175.70 points support, once again tested, should be broken soon. We are thereforenegative in the short term and we expect a fall of the CAC40 index down to the 3065 points support, a horizontal support level that is also the lowest threshold of the channel.  We set the invalidation level of this bearish strategy slightly above the 3285 points resistance, the former local high.

Close price 3162

2 months Opinion BEARISH
2 weeks Opinion POSITIVE

Resistances 3285 / 3360 pts
Supports 3175 / 3065 pts

Follow-up Analysys: On April 16th this year, we recommended the purchase of Markit-iBoxx $ Treasuries 3-7 index ETFs related. Since then, prices kept rising and our first intermediate target at 194.20 points has already been reached.


This publication is solely intended as information and does not constitute any investment advice or an offer, solicitation or recommendation to acquire or dispose of any investment or to engage in any transaction. Althoughthis publicationis issued in good faith, no representation or warranty, express or implied, is or willbe made and no responsibility or liability is or willbe accepted by NYSE Euronext or by any of its officers, employees or agents in relation to the accuracy or completeness of this publicationand any such liability is expressly disclaimed.No information set out or referred to in this publicationshall form the basis of any contract. The creation of rights and obligations in respect of financial products that are traded on the exchanges operated by NYSE Euronext’s subsidiaries shall depend solely on the applicable rules of the market operator. NYSE Euronext encourages you to reach your own opinion as to whether investments are appropriate or relevant and recommends you not to make any decisions on the basis of the information contained in this publication before checking it, as you will bear full responsibility for any use that you make of it. Persons wishingto trade products available on NYSE Euronextmarkets or wishingto offer such products to third parties are advised, before doing so, to check their legal and regulatory position in the relevant territory and to understand the related risks. All proprietary rights and interest in or connected with this publicationare vested in NYSE Euronext.No part of it may be redistributed or reproduced in any form or by any means or used to make any derivative work (such as translation, transformation, or adaptation) without the prior written permission of NYSE Euronext. NYSE Euronext refers to NYSE Euronext and its affiliates and references to NYSE Euronext in this publication include each and any such company as the context dictates. NYSE EuronextSM, Euronext®, trackers®, are registered marks of NYSE Euronext.

Source: ETFWorld – Day By Day – Indipendent Research



Artículos similares

Technical Analysis: Stoxx Europe 600 Real Estate index : Clearing of the 2011 highs


Technical Analysis: Stoxx Europe 600 Insurance index: bullish breakout of the triangle


Technical Analysis: MSCI EM Asia index: towards March 2012 highs