CAC finds buyers again around 5572.77
CAC 40 Index (CAC) Technical Analysis Report for Jul 08, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CAC ended Monday at 5589.19 losing €4.53 (-0.08%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (CAC as at Jul 08, 2019):
Monday's trading range has been €26.20 (0.47%), that's below the last trading month's daily average range of €42.11. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for CAC.
Unable to break through the key technical resistance level at 5593.60 (R1), the market closed below it after spiking up to 5598.97 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on June 24th, CAC lost -0.13% on the following trading day. After having been unable to move lower than 5573.35 in the prior session, the index found buyers again around the same price level today at 5572.77.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 5629.79 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 5556.76 where further sell stops could get triggered. 2018's high at 5657.44 is within reach and we might see further upside momentum should the CAC manage to break out beyond.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for CAC 40. Out of 788 times, CAC closed higher 54.70% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 57.99% with an average market move of 0.12%.
With five out of the other five Major European Indices closing lower today, the ones that stand out on the negative side are BEL20 losing -0.96% and TECDAX closing -0.24% lower. None of the markets managed to end the day in the green. Read more