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CAC 40 Futures Forecast December 7, 2012, Technical Analysis

By:
Christopher Lewis
Updated: Aug 21, 2015, 00:00 UTC

The CAC Index fell during most of the session on Thursday, but caught a significant bounce in order to form a hammer just above the €3600 level. Because

CAC 40 Futures Forecast December 7, 2012, Technical Analysis

The CAC Index fell during most of the session on Thursday, but caught a significant bounce in order to form a hammer just above the €3600 level. Because of this, it does look like we’re getting ready to break out and a move above the highs for the Thursday session would be bullish enough for us to get long and interesting buy-and-hold type of position.

Alternately, if we managed to break down below the low of the Thursday session this would signify a “hanging man”, one of the more bearish candlestick patterns out there. However, we think that €3500 would step up for support if that did happen and as a result wouldn’t be looking for any type of large move. This move looks like we have broken out and come back to find support in the same general area in order to “prove” the validity of the zone that now could very easily be the floor of the market.

When you look at the €3600 level on the longer-term charts, you can see that it is indeed a very significant level to overcome. The fact that the French index could do so is a very bullish sign indeed. With this in mind, we think that a break of the highs from the session on Thursday will signify a new leg up in this market as we go forward.

We could see levels as high as 4000 in the next couple of months, and as a result we think this market will be one of the more interesting ones to follow. This lines up well considering that the core of Europe itself is doing fairly well, and this includes France, Germany, and the Netherlands. Because of this, the French stock market going up should not be much of a surprise.

As long as we can stay above the €3600 level, we find this is a “buying only” market, and will only do so. This could be the beginning of something rather special, and as a result we are very interested in paying attention. As for selling, we will become serious about it until we break below the €3500 level.

CAC 40 Futures Forecast December 7, 2012, Technical Analysis
CAC 40 Futures Forecast December 7, 2012, Technical Analysis

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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