- The Parisian index has been a big winner for a while, and now it looks like we could continue to see plenty of opportunities going forward.
The Parisian index did rally a bit during the early hours here on Thursday, but it looks like it's giving back about half the gains. That being said, the CAC has recently broken above the crucial 8500-euro level, an area that previously had been resistant, and then we pulled back to test it for support.
So, all things being equal, this is a market that I think continues to be very bullish. This is a market that I think continues to see a lot of volatility and choppiness, but more importantly, it continues to see a lot of sector rotation that has been benefiting Paris. For example, luxury has done okay, and then it didn't do okay, and suddenly technology helped.
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Technical Support and Measured Moves
You are starting to see a lot of noisy behavior, and I think you will continue to get an opportunity to buy on dips. The 8400 euro level below, which was the previous resistance barrier, I think is your floor in the market. The 50-day EMA is currently at the 8300-euro level, and it is trying to offer support.
All things being equal, I think we have a situation where we have a measured move of 400 euros from the previous consolidation, suggesting that we could go to 8800 euros.
All things being equal, this is an index that I do like, and in general, indices around the world are doing okay right now and Asia is doing quite well. So, I think this is one that continues to rise over time and you look for dips to take advantage of value. This is a market that I continue to favor over many others.
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