French Stocks Move Lower for the Third Day in a Row

CAC 40 (4,085.30)

Points to consider with the French stock index:

• The headline French stock exchange finished lower again yesterday.
• There is a bearish breakout below 4,086.20.

The CAC 40 moved lower for the third day in a row yesterday. The French stock exchange was as low as 2.16 at one point. Price action did rebound from a low of 4,062.80 and are trading near its support level of 4,086.20. Should prices stay below this level, then sellers could then bring the index towards a new weekly low. At this price level, we are in danger of a bearish breakout. Which leaves the CAC 40 in a very vulnerable area. Should the index stay below this area today, then the next downside support barrier to watch is at 4,261.69.

French Stock Exchange Technical Analysis

Should the stock exchange in France, break back higher into the trading range of the last month or so, that would be a plus. This range begins at 4,116.50. The exchange managed to close above this support yesterday which was good. This means the bearish momentum was temporarily put on hold for now. This could mean the CAC 40 now move towards resistance levels. Especially if it manages to stay above the former support now resistance at 4,207.40.

Keep in mind that there is a lot of volatility in play thanks to the aftermath of the Brexit vote that saw the United Kingdom voting to leave the European Union. There is a lot of weakness in the Sterling Forex markets and a lot of uncertainty, from investor sentiment alone, that is weighing on the regional financial markets.