CAC Forecast Today 20/5: Continues To Look Supported (Video)
Date
5/20/2024 2:49:28 PM
(MENAFN- Daily Forex)
The initially pulled back just a bit during the trading session on Friday but has turned around to show signs of life. The €8,150 level has offered significant support and therefore, by turning around the way we have, we are ending up forming a hammer and break above the top of the hammer opens up the possibility of a move to the €8,300 level, which is where we recently have seen some resistance.
The question at this point isn't so much for me as whether or not we need to be long, or if we need to be short of the market, but rather whether or not we want to buy here or if we want to buy on a breakout. Buying the dip in this market certainly would be a strong way to take advantage of what's been a very strong uptrend, but you can also see where some people might be worried about a little bit of a double top because of this.
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Caution Could Lead to Opportunities
If you were cautious, then you may wait for a move to the upside, but a pullback at this point in time probably doesn't even really change much, at least until we break down below the €7,900 level, which is pretty significantly below where we are. Keep in mind that the European Union is pretty hot right now when it comes to the stock market.
And France, of course, is the second biggest market, tends to focus more on luxury goods. But I digress. At this point, it certainly looks like a short term bounce is in the cards, so I remain bullish. Nothing's changed about that. And if we pull back then I would look again somewhere closer to the 50 day EMA as a potential entry point. Furthermore, I would also be paying attention to the euro, because if it gets cheaper, that could have people betting on cheaper exports in France driving the stock market higher. The market will continue to be noisy, but positive overall.
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