• The CAC40 has traded lower from Senko Span Resistance
• Cloud Breakouts begin under 4,660.25
• The Tenkan Line opens the CAC40 for a trend change
Price action for the CAC40 ( FRA40 ) has retraced back inside of its Daily , and has found resistance under the Senko Span B ( SB ) line at a price of 4,721.50. Prices have initially moved lower this morning, and are currently at a critical juncture for the index. The CAC40 is currently trading at Senko Span A (SA) which is representing short term support at a price of 4,660.25. Traders, watching for a resumption of the current down trend, will wait for prices to turn under the Kumo cloud to validate a move back towards lower lows.
Traders looking for a move for the CAC40 should also note that the Tenkan Line (TL) is now trading above the Kijun Line ( KL ). This signa is typically , andl can typically be used to determine the development of a new trend. If a move does continue, traders will look for prices to initally break through the cloud resistance mentioned previously. In this scenerio, further confirmation of a reversal would come with a move of the Lagging Line ( CS ) back above the cloud as well. Traders at this pouint would consider the current downtrend concluded and should consider adapting their trading to the markets new chosen direction.
Fundamental traders of the CAC40 should also watch the ecnomic calendar for Thursdays European rate decision. Expectations for the event are set to keep rates the same, at .05%. Even though no major changes in policy are expected, this is a high importance event and has the potential to cause for the Index.