CAC dominated by bulls lifting the market higher throughout the day
CAC 40 Index (CAC) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, CAC finished Thursday at 4543.58 gaining €111.28 (2.51%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 4453.01, the index confirmed its breakout through the previous session high after trading up to €90.57 above it intraday.
Daily Candlestick Chart (CAC as at Mar 26, 2020):
Thursday's trading range has been €247.52 (5.71%), that's above the last trading month's daily average range of €190.17. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for CAC.
Three candlestick patterns are matching today's price action, the Bullish Closing Marubozu and the White Candle which are both known as bullish patterns and one bearish pattern, the Last Engulfing Top Pattern. The last time a Bullish Closing Marubozu showed up on Tuesday, CAC gained 4.47% on the following trading day.
While the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for CAC 40. Out of 158 times, CAC closed higher 56.33% 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 four trading days, showing a win rate of 56.33% with an average market move of 0.05%.
With five out of the other five Major European Indices closing higher today, the ones that stand out on the positive side are BEL20 gaining 2.9% and N100 closing 2.43% higher. None of the markets ended the day in the red. Read more