CAC runs into sellers again around 4967.35
CAC 40 Index (CAC) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
CAC ended the month 5.12% higher at 4935.99 after losing €9.47 (-0.19%) today. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CAC as at Jun 30, 2020):
Tuesday's trading range has been €65.39 (1.32%), that's far below the last trading month's daily average range of €113.09. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for CAC.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
After having been unable to move above 4977.63 in the prior session, CAC 40 ran into sellers again around the same price level today, missing to move higher than 4967.35. The last time this happened on June 18th, CAC actually gained 0.42% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the close-by swing high at 5014.83 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 4867.33 where further sell stops could get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for CAC 40. Out of 795 times, CAC closed higher 54.09% 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 57.61% with an average market move of 0.15%.
With four out of the other five Major European Indices closing higher today, the ones that stand out on the positive side are TECDAX gaining 1.92% and DAX closing 0.64% higher. On the flipside the worst performer has been FTSE closing -0.9% lower. Read more