The CAC 40 Trades In Range

The CAC 40 continues to trade in a defined range today, and is up a modest +0.66% on for the session. Currently prices are trading just through R1 pivot, which is found at 4,396.54. If prices continue to trade inside of today’s pivot range, it opens the Index up to test range support, which is found at a price of 4,362.37. In the absence of a breakout, traders should also look for a return in price towards 4,413.63. This value is currently acting as range resistance, and will remain valid in the absence of a price breakout.

CAC 40, 30 Minute Chart with Pivots

(Click on image to enlarge)

In the event that prices break from the previously identified range, traders may look for a breakout either above the R4 pivot or below the S4 pivot. The R4 pivot displayed above is located at 4,254.46. A move above the R4 pivot would be significant as it would be the third attempted bullish breakout over the last three trading sessions. Alternatively, bearish reversals may begin beneath the S4 pivot found today at a price of 4,336.74. In this scenario, traders may begin looking for price to challenge lower lows and potentially move on the June 2016 low at 4,099.80.

Sentiment for the CAC 40 (Ticker: FRA40) has flipped with SSI (speculative sentiment index) reading at –1.86. This value indicates that the CAC 40 may be preparing for further advances in price. If the Index does breakout higher, traders should look for SSI to move to a negative extreme of -2.0 or greater. Alternatively, if prices retrace downward, traders should look for SSI to move towards values that are more neutral.