CAC 40 Index Futures forecast for the week of December 10, 2012, Technical Analysis

The CAC 40 Index futures rose for the week over the last five sessions, but more importantly closed above the all-important €3600 level. This suggests that we are going much higher, and we do suspect that a move to €3700 will, in very short order. However, we see much higher prices, as much as €4000 over the medium-term. Now that we have broken above the €3600 level, we have become very bullish of this market.

Selling is not going to be a possibility at this point time because we see far too many places that support could come back into play. Because of this, we think this is become essentially a buy-and-hold type of market going forward.