CAC closes higher for the 2nd day in a row


CAC 40 Index (CAC) Technical Analysis Report for Jan 17, 2020 | by Techniquant Editorial Team

Highlights

CAC soars, gaining €61.69 (1.02%) within a single day
CAC rises to highest close since July 16, 2007
CAC dominated by bulls lifting the market higher throughout the day
CAC closes higher for the 2nd day in a row

Overview

Moving higher for the 2nd day in a row, CAC finished the week 1.05% higher at 6100.72 after surging €61.69 (1.02%) today. This is the biggest single-day gain in over two weeks. Today's close at 6100.72 marks the highest recorded closing price since July 16, 2007. The bulls were in full control today, moving the market higher throughout the whole session.

Daily Candlestick Chart (CAC as at Jan 17, 2020):

Daily technical analysis candlestick chart for CAC 40 Index (CAC) as at Jan 17, 2020

Friday's trading range has been €43.52 (0.72%), that's slightly above the last trading month's daily average range of €42.74. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for CAC.

One bullish candlestick pattern matches today's price action, the White Candle.

Crossing above the upper Bollinger Band for the first time since November 7, 2019, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 6024.08 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on November 6, 2019, CAC gained 0.41% on the following trading day.

The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.

Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. Its common bullish interpretation has been confirmed for CAC 40. Out of 634 times, CAC closed higher 51.10% 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 57.57% with an average market move of 0.15%.

With five out of the other five Major European Indices closing higher today, the ones that stand out on the positive side are N100 gaining 0.94% and FTSE closing 0.85% higher. None of the markets ended the day in the red. Read more


Market Conditions for CAC as at Jan 17, 2020

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