CAC finds buyers at key support level
CAC 40 Index (CAC) Technical Analysis Report for Sep 14, 2018 | by Techniquant Editorial Team
CAC ended the week 1.91% higher at 5352.57 after gaining €24.45 (0.46%) today. Today's closing price of 5352.57 marks the highest close since September 3rd. Trading €8.62 higher after the open, the index was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move past the previous day's trading range in a lackluster session. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (CAC as at Sep 14, 2018):
Friday's trading range was €23.95 (0.45%), that's far below last trading month's daily average range of €43.54. Things look different on a weekly scale, where volatility is slightly below the markets average with the monthly volatility being slightly above average.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
After trading as low as 5338.25 during the day, the stock index bounced off the key support level at 5349.48. The failure to close below the support might increase that levels importance as support going forward. Prices are trading close to the key resistance level at 5385.19. After having been unable to move above 5366.34 in the previous session, the market ran into sellers again around the same price level today, failing to move higher than 5362.20.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 5366.34 where further buy stops might get triggered.
With five out of the other five Major European Indices closing higher today, the ones that stand out on the positive side are TECDAX gaining 1.2% and DAX closing 0.57% higher. None of the markets ended the day in the red. Read more