CAC 40 Forecast Today- 29/08: Slams Into 200-Day EMA (Chart)
Date
8/29/2024 2:56:36 PM
(MENAFN- Daily Forex)
The CAC 40 is at a major inflection point, and of course France is quite a bit different in Germany at the moment, due to the fact that the French Economy seems to be struggling a bit. Furthermore, the CAC 40 is full of luxury brands, and with the global economy being a bit shaky, it does make a certain amount of sense that luxury brands are going to be underperforming.
Technical Analysis
Looking at the technical analysis of this chart, we are currently trading between the 200-Day EMA to the upside, and the 50-Day EMA underneath as support. We are also hanging around the €7600 level, which is right in the middle of the previous consolidation area. Furthermore, we had bounce quite significantly, only to run into this area and slow down over the last couple of days. All things being equal, I'm watching this pair for a breakdown below that 50-Day EMA, because I think at that point in time you could see a little bit of momentum creep back into the market to the downside.
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On the other hand, if we were to break above the €7750 level, then it's likely that the market goes looking to the €8000 level. Clearing that level then opens up the possibility of a bigger“buy-and-hold” situation, but at this point time it looks like we are going to struggle to do that. Quite frankly, I think there are a lot of concerns out there when it comes to the global economy, and it's likely that the CAC 40 will not be able to avoid it. That being said, it'll be interesting to see how the market is going to go going forward, because quite frankly the CAC has underperformed several of the other European indices
On a break down, I do believe that we could see a bit of a“trapdoor effect” as we would see this market fall apart, perhaps opening up a drastic drop and I think at this point in time you need to also keep an eye on the text, because if it starts to fall, it should be even worse in France.
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