The Parisian index was a little bit negative during the trading session on Friday, but in all honesty, volume might have been an issue.
CAC 40
The Parisian index was a little bit negative during the trading session on Friday, but in all honesty, volume might have been an issue. The fact that we are hanging around the 8,000-euro level, a large round psychologically significant figure, comes into play as well. Beyond that, we also have to look at the 50-day EMA offering a bit of a barrier right along with the 200-day EMA.
All things being equal, this is a market that I think remains “buy on the dips” as long as we get some type of good news coming out of the Middle East or at the very least not bad news. There are a lot of concerns out there about where the global economy could go and of course, France won't be shielded from that.
Technical Inflection Points and Potential Upside
We are in a major inflection point, and I think it is worth watching very closely this area just above 8,000 euro because if we can break above there, it is likely that this market could take off. I think short-term pullbacks offer plenty of buying opportunities, especially near the 7,800-euro level and then again at the 7,700-euro level.
The CAC will more likely than not move right along with other indices, but with Friday being Good Friday there were a lot of people missing. Some countries didn't even trade at all and therefore I wouldn't read too much into the candlestick on Friday and in fact would essentially ignore it. The fact that we recovered so strongly on Thursday tells me there is an underlying bid to this market.
We saw that in New York as well and I think as long as the weekend is somewhat constructive or at least not destructive of the global narrative when it comes to geopolitics, it's probably going to end up being a positive moving market eventually. I expect a big fight, but above 8,050 euro this thing could take off.