Home » Technical Analysis » French Stocks find Support at the Trend Line

French Stocks find Support at the Trend Line

The French stock bourse, the CAC 40, turned sharply lower yesterday and continued falling after the FOMC rate decision. The price decline was led by BNP Paribas which fell over 3.7 percent and AXA which also lost 3.7 percent. Shares of Peugeot were also significantly lower on the day. Only Sanofi, Unibal and Nokia bucked the down day to show some gains.

At this point technical traders should look for key values of support. Right now, the fall is being contained by the rising trend line set by a series of lower highs from the September 16 low to the October 13th low.

French CAC Technical Analysis

Should the rising trend line fail to hold, then we could see steeper declines from the French stock bourse. There is a key level of support around the 200 day moving average at 4,380.10. A move below this point would suggest a more bearish trend emerging.

Should French stocks find support here then we would see the current bull trend continue as this was a temporary contraction lower to wind the market up. In this scenario traders should look at the October price high at 4,579.30. Long term traders need to continue to watch this level as it is significant. Should this happen the retracement of gains was just that a correction lower in a bull trend.

Find A Regulated Broker

FXCM
OCTAFX
Libertex
IronFX
FXTM
Swissquote
24option
AvaTrade
Plus500
GDMFX
FXGiants
IQoption
eToro
Orbex
Markets.com
FBS
InterTrader
STO

About ForexMarketz

Check Also

kiwi, dollar, nzd

The Kiwi Dollar takes a big hit this Morning

This morning, so far in early Asian trade hours, the Kiwi dollar has taken a …